From Tehran to Baghdad... Will "removing zeros" become a policy to conceal structural deficits?
The Economic Committee of the Iranian Shura Council approved a draft law to remove four zeros from the national currency, a move that suggests a technical effort to address a structural crisis rather than a genuine economic breakthrough. When monetary solutions become political facades, tampering with the digital form of currency becomes an expression of a deep dilemma at the core of public policy.
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The draft law seeks to establish the riyal as the official currency, but with a new calculation: each new riyal is equivalent to ten thousand of the previous version, divided into 100 qirans. Although this proposal is not new, it was re-proposed from the 2019 archives, amid the ongoing erosion of purchasing power and a clear failure to contain inflation or restore monetary confidence.
It's no secret that this proposed amendment comes in the context of intense economic pressure since Washington's withdrawal from the nuclear agreement in 2018 and the subsequent "maximum pressure" policies. With the dollar on the black market reaching 925,000 riyals, it appears the state is trying to restore the currency's image, not its actual value. This recalls the concepts of hyperinflation and revaluation, which some countries resort to as short-term palliatives in the absence of structural reforms.
Behind this decision lies a political desire to redefine the relationship between state and citizen by "simplifying" financial codes, as the Economic Committee spokesperson indicated when he said the goal is to "simplify transactions and institutional scrutiny." However, this simplification conceals a greater complexity: a collapse of trust, a spectacle of decline, and a state of structural denial.
Could this model apply to Iraq? The data are different in form, but similar in content. Iraq, too, suffers from an excessively rentier economy, a parallel currency market, and a lack of transparency in reserve management. If political crises and financial corruption persist, the option of "removing zeros" may one day be presented not as a monetary option, but rather as a symbolic cover to evade the demands of genuine reform.
An expert details the impact of issuing promotions and annual bonuses on Iraq's financial expenditures.
Economic expert Ahmed Abd Rabbo spoke on Monday, August 4, 2025, about the repercussions of issuing promotions and annual bonuses on financial expenditures and the state treasury.
In a statement to the "Al-Jabal" platform, Abdel Rabbo said, "The issuance of promotions, annual bonuses, and the inclusion of certificates earned during service for all state employees is a strategic step toward enhancing the efficiency of the administrative apparatus and motivating human resources in the public sector, despite the financial challenges facing the general budget."
He explained that "this directive reflects the government's commitment to achieving job fairness and stimulating academic and professional talent within state institutions. Recognizing earned degrees and accumulated promotions contributes to boosting employee morale and fostering a climate of institutional stability and productivity."
He added, "Such decisions should not be viewed solely from the perspective of financial costs, but also from the perspective of indirect economic impacts. Increasing employee incomes leads to stimulating local consumption and revitalizing the domestic market, which is one of the tools for stimulating the economy during periods of recession."
He emphasized that "this measure falls within a 'responsible expansionary fiscal policy' aimed at re-injecting liquidity into the economic cycle through wages and increasing government spending on salaries and bonuses. If controlled within carefully considered limits, this can create positive economic dynamics and support business activity in local markets."
Regarding the decision's impact on the budget, Abdul Rabbo explained that "the existing financial deficit in Iraq is not only linked to salary increases, but also to the waste of resources, weak economic diversification, and declining non-oil revenues. Therefore, these decisions must be accompanied by genuine reforms in the management of public funds, maximizing alternative revenues such as tax and fee collection, and activating local and foreign investment."
The economic expert concluded by saying, "We need to strengthen citizens' confidence in the state apparatus, and this decision sends a positive message that credentials and expertise will not be wasted, but rather recognized and honored. It is a commendable step toward reforming the public service and strengthening human capital."
Earlier today, Iraqi Prime Minister Mohammed Shia al-Sudani directed the Ministry of Finance to issue orders for promotions and annual bonuses.
Al-Sudani said in a statement received by Al-Jabal, "We have directed the Ministry of Finance to issue orders for promotions and annual bonuses, to include certificates for those who obtained them during service, and to include services, in order to preserve the organizational positions and acquired rights of all state employees."
He added, "We also directed the Ministry of Finance to calculate variables and financial rights according to cost tables, and to grant the new job title and grade within the legal contexts, controls, and attached regulations."
SOMO: We have not received oil from the Kurdistan Region yet.
The Director General of the State Oil Marketing Organization (SOMO), Ali Nizar Faiq, announced that the company has not received any oil from the Kurdistan Region, and that Iraqi ports are subject to strict oversight and are managed using advanced mechanisms. Erbil and Baghdad had agreed on July 17 to deliver 230,000 barrels of Kurdistan Region oil per day to SOMO, but drone attacks on oil fields in the Kurdistan Region have significantly reduced oil production.
SOMO's general manager said his company has completed all contracting procedures to resume oil exports through the Turkish port of Ceyhan and is ready to receive any quantity of oil delivered by the Kurdistan Region.
The Director General of SOMO pointed out that Iraq exports between 3.35 and 3.4 million barrels of oil per day, and that between 78% and 80% of this volume goes to Asian markets, which are emerging markets with increasing demand for oil consumption, he said. He said that the remaining quantity, which is less than 20% of Iraq's oil exports, goes to European markets, and a small portion goes to the United States.
On July 28, SOMO published a letter stating that some oil tankers from Umm Qasr and Khor al-Zubair were transporting oil via unknown and unauthorized routes (or smuggling oil).
In its letter to the National Security Agency, SOMO noted that these tankers use sophisticated technologies to conceal or change their locations and delay providing information about themselves and their destinations, raising suspicions that they are smuggling oil.
The document was signed by SOMO Director General Ali Nizar, who stated that the leaked document was authentic but that it was a routine and normal procedure aimed at regulating oil tanker loading schedules. He emphasized that Iraqi ports are protected and managed in coordination with security agencies.
The Director General of SOMO indicated that the letter is directed solely to the relevant security agencies and is written in a high-level format to ensure complete control over export operations, and that any suspicious tanker is located by the relevant authorities.
According to Ali Nizar, the "four ships" referred to in SOMO's letter were tracked and may have been carrying industrial materials unrelated to oil. He said his company does not deal with any sanctioned companies or entities and takes the necessary measures to divert any suspicious vessels from Iraqi waters.
Kurdistan-Baghdad disputes return with greater force amid domestic and foreign challenges.
he fiery statements made by the Kurdistan Region's Interior Minister, Rebar Ahmed, against the federal government reflect the growing tensions in the relationship between Erbil and Baghdad, which have recently worsened due to the stifling financial crisis facing the region. As the financial pressure expands, thorny issues that have been postponed for years are returning to the forefront, most notably the disputed territories, or what are known as the areas covered by Article 140 of the Iraqi constitution.
This threatens to revive old political and geographical conflicts in an extremely complex landscape. A report by Al-Arab newspaper, followed by Al-Mutalaa News Agency, stated that: “The escalation of tensions between the federal government and the autonomous authorities in Iraqi Kurdistan, especially during the period of the march towards the parliamentary elections scheduled for next November, is considered a deduction from the credit and successes of the government of Iraqi Prime Minister Mohammed Shia al-Sudani in calming the general political atmosphere in the country and managing the relationship between the various internal partners.”
The report added, "From a direct logic of self-interest, the tension between Baghdad and Erbil plays against al-Sudani's electoral interests, as he risks losing the support of powerful Kurdish partners already involved in forming his current government." The report continued, "On the other side of the equation, the escalation and continuation of tensions are seen as a success for al-Sudani's opponents and major rivals from within the Shiite political family to which he belongs. This explains the insistence of Shiite forces, parties, and factions on complicating the relationship between the Kurdistan Region and the federal government by being strict on the issue of the region's financial dues from the Iraqi state budget and the related issue of salaries, to the point that some of these factions have been involved in drone attacks on oil facilities in Iraqi Kurdistan."
The Iraqi Kurdish community's anger at the federal state's policies came from one of its most prominent party leaders, Kurdistan Democratic Party (KDP) leader Masoud Barzani. On the eleventh anniversary of the massacres of Yazidis by ISIS, Barzani called for "an end to those chauvinistic mentalities and behaviors that continue to perpetrate injustice against the people of Kurdistan, using different pretexts each time and operating with an inhumane, denialist mentality." The regional government, through its Minister of Interior, expressed its anger over the salary issue and expanded its criticism to include other contentious issues, most notably the disputed territories and the recent repeated drone strikes.
Minister Ahmed said in a press conference that: "The issue of employee salaries has become a long story and has been blown out of proportion, despite the fact that salaries are a fundamental right of the people of Kurdistan and are linked to people's lives."
He noted that: "The relationship between the region and the Baghdad government is constitutional, so we must return to the constitution and the law to implement it. The rights of the people of Kurdistan must be preserved and the policy of harming their rights must end." He added that the policy of attacking the Kurdistan Region must end, as the deduction of salaries and budgets is no less dangerous than the disasters that have previously befallen the region. He considered that: "What is happening is tantamount to a siege imposed on the people of Kurdistan and constitutes a major catastrophe."
Over the past few months, the salary issue has become a chronic dilemma, recurring each time after being resolved ad hoc with immediate solutions, some of which require the region to transfer a portion of its local revenues to the federal authority. Local media reported that "the 120 billion dinars in non-oil revenues that the Kurdistan Regional Government is scheduled to transfer to the Iraqi government in exchange for June salaries are ready for deposit. The reason for not depositing them is the waiting for an agreement on oil or guarantees from Baghdad to fund salaries." In mid-July, Baghdad and Erbil agreed to hand over 230,000 barrels per day of locally produced oil to the State Organization for Oil Marketing (SOMO).
However, drone attacks have caused significant damage to oil facilities, leading to a reduction in production. The Kurdistan Regional Government's Minister of Interior confirmed that: "The regional government has fully fulfilled its obligations to Baghdad. Although the agreements concluded were outside the scope of the law and the constitution, the Prime Minister and the Council of Ministers approved them in order to pay the salaries of the people of Kurdistan. Therefore, the federal government must take serious action towards the region and pay the salaries of its employees."
The minister also touched on another contentious issue between Baghdad and Erbil, one that is not always on the agenda. Raising it at this time is a sign of the tension between the two sides: the Article 140 areas. Ahmed implicitly accused the federal authorities of turning a blind eye to demographic changes taking place in those areas, saying, "The communities living in those areas, including Yazidis, Christians, Shabaks, and others, are facing significant pressure on their existence and culture due to the significant demographic shift taking place in those areas.
He called on the international community and the federal government to prevent demographic change in those areas." He also addressed the most prominent security challenge currently facing the Kurdistan Regional Government (KRG) in Iraq, which has implications for its relationship with the federal government: drone attacks.
These attacks are still officially described as having an unknown origin, despite widespread belief that none other than armed Shiite factions affiliated with the Popular Mobilization Forces (PMF), which is nominally an official institution under the command of the Commander-in-Chief of the Iraqi Armed Forces. Since early last month, the region has been subjected to more than twenty drone and missile attacks, primarily targeting oil fields and facilities. The minister pointed out that "there is a joint investigation committee between the regional government and the federal government.
It is a technical committee working to unify efforts to determine the types of drones used by armed groups." He considered that: "It has become clear to the Kurdistan Regional Government and the federal government which groups and parties possess such drones and have previously directed them towards the Kurdistan Region," stressing that he said, "We know where the drones are manufactured, how they were directed towards the Kurdistan Region, and what their purpose is, but we are awaiting the results of the investigation committee."
Oil: Major global energy companies confirm participation in the Baghdad International Energy Forum.
Ports: Any ship that does not carry official documents will not enter Iraq.
Al-Fartousi said in a press statement, "There is continuous monitoring of all ships entering the Khor Abdullah Canal, and the Iraqi authorities are working to verify the official documents of all ships entering the canal," adding that "territorial waters are subject to the law and authority of the state."
He added, "The military and security forces are conducting a survey of Iraqi territorial waters to investigate all commercial and oil vessels present in the waiting areas."
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Today, Parliament holds its final session of the second term, with 10 items on the agenda.
The House of Representatives intends to hold its fourth session of the second term of its fourth and final legislative year today, Tuesday.
According to the agenda published by the media department, the parliament will vote on five laws and read five others. The parliamentary security and defense committee noted that all details of the Popular Mobilization Forces law have been finalized and submitted to the parliament presidency for a vote in the upcoming sessions .
According to today's session agenda, the Council will vote on draft laws, amending Law No. 20 of 2020 on the Foundations of Equivalency of Degrees, the Renewable Energy Regulation Law, the Mental Health Law, amending the National Nuclear Regulatory Authority Law, and the law ratifying the Mutual Encouragement and Protection Agreement between Iraq and Saudi Arabia. The Council will also conduct first readings of three draft laws: the first amendment to the Sunni Endowment Law, the Juvenile Care Law, and the first amendment to the Minors Care Law. The Council will also conduct the second reading of the Army Aviation College Law and the proposed law regulating the rights of minors.
For his part, the head of the Parliamentary Security Committee, Karim Aliwi, stated that "the Popular Mobilization Law has been fully completed," noting that "the committee hosted the leadership of the Popular Mobilization Authority, and its proposals and comments were incorporated into the final version of the law, ensuring the rights of the Mobilization's members are preserved."
He explained that "the committee was keen to prepare a law that meets the requirements of the current stage and does justice to the fighters who made great sacrifices in the liberation battles, and all technical and legislative matters related to it have been completed."
Behind the scenes of the stormy parliament session... MPs to the Iraq Observer: Al-Mashhadani spoke with emotion, shouting: The Sunnis are the masters of Iraq!
The Iraqi parliament recently witnessed a tense atmosphere and sharp clashes, against the backdrop of holding a session in the absence of Sunni MPs, which sparked a political crisis within the parliament. Tensions escalated after Parliament Speaker Mahmoud al-Mashhadani entered the hall, where he strongly objected to what he described as marginalization of the Sunni component and attempts to exclude it. This prompted him to issue provocative statements that sparked widespread controversy among MPs and opened the door to questions about the future of the political balance within the Iraqi parliament.
*Parliamentarian details what happened
Member of Parliament Thaer al-Jubouri revealed on Tuesday the details of the dispute that accompanied the last parliamentary session, stressing that “the problems began with words and escalated to the point that the session was not held as agreed upon, and the reading of a number of important laws was stopped.”
Al-Jubouri said in a statement to “Iraq Observer” that “Parliament Speaker Mahmoud al-Mashhadani, after the Sunni MPs left for the cafeteria, followed them to convince them to return to the hall to complete the legal quorum,” adding that “these MPs did not respond to him, which led to al-Mashhadani’s delay in returning to the session hall.”
He continued: “Meanwhile, First Deputy Speaker Mohsen al-Mandalawi took a count of the MPs present, and it turned out that there were 169 of them. He decided to hold the session because the quorum had been digitally completed, despite the absence of the Sunni component.”
He pointed out that “al-Mashhadani returned to the hall in a state of discontent, and said verbatim: (I did not leave or request leave, so how can the session be held?), considering that the quorum was not legally complete, and that what happened was a deliberate absence of the Sunni component.”
Al-Jubouri explained that Al-Mashhadani strongly protested the session being held without his presence, noting that he “made accusations that what happened was an attempt to marginalize the Sunni component and exploit its absence. He began to heap praise on this component and refused to pass any decision without its participation.”
He pointed out that “some political parties tried to exploit the incident to incite sectarianism, with the aim of influencing voters in the upcoming elections,” adding that “what happened today affects all representatives and confirms once again the fragility of consensus within the Iraqi parliament.”
*What has not been made public in this context, informed parliamentary sources revealed to “Iraq Observer” undisclosed details that accompanied the last parliament session.
According to the sources, Parliament Speaker Mahmoud Al-Mashhadani entered the session angrily and began shouting, “The Sunni component is marginalized, and they are the masters of this country.”
Al-Mashhadani also hinted, according to the sources, at attempts to “steal the Sunni component.”
This escalation came after First Deputy Prime Minister Mohsen al-Mandalawi convened a session attended by 169 MPs, while Sunni MPs were absent, having withdrawn to the cafeteria. This prompted al-Mashhadani to declare the session illegitimate and accuse political parties of attempting to pass laws without the full participation of the Sunni community.
Al-Mashhadani's remarks sparked chaos in the hall, amid attempts to contain the situation. Some MPs considered the events to reveal the fragility of political consensus and the return of sectarian rhetoric ahead of the upcoming elections, as some forces seek to inflame divisions and consolidate their influence at the expense of national partnership.
Economist: The Ministry of Finance is currently unable to submit the draft budget, and identifies the reasons.
Al-Saadi told Al Furat News Agency that "the Ministry of Finance is currently unable to submit the draft general budget due to the Kurdistan Region's failure to deliver oil and non-oil revenues," noting that "approving the budget will allow room for public spending, which will directly impact the well-being of citizens."
Al-Saadi added, "Corruption represents a major challenge that is eating away at state institutions and cannot be controlled despite the measures taken by the Integrity Commission and the government."
In a related context, he stressed that "Iraq's connection to the US Federal Reserve represents a major catastrophe, as funds can only be freely used by submitting requests to the bank, which often delays its responses," asserting that "all of these factors limit and restrict the freedom of the Iraqi economy."
A new US threat to Iraq. The US State Department says the passage of the Popular Mobilization Forces (PMF) law will change the nature of the bilateral security partnership with Baghdad.
On Tuesday evening, the US State Department reiterated Washington's objection to the Iraqi parliament's efforts to enact the Popular Mobilization Forces (PMF) law, noting that its passage would alter the nature of the bilateral security partnership with Baghdad.
"We strongly oppose the legislation, which empowers armed groups linked to Iran and terrorist organizations," State Department spokeswoman Tammy Bruce said during a press conference in Washington, D.C.
The Iraqi Parliament passed the first and second readings of the draft Popular Mobilization Forces Law, awaiting a third reading and vote.
The US State Department warns Baghdad: The Popular Mobilization Law changes the nature of our bilateral security partnership with Iraq.
The US State Department confirmed Tuesday evening that Washington opposes the Iraqi parliament's efforts to enact the Popular Mobilization Forces (PMF) law, noting that its passage would alter the nature of the bilateral security partnership with Baghdad.
"We strongly oppose the legislation of the Popular Mobilization Forces (PMF) law, which empowers armed groups linked to Iran and terrorist organizations," State Department spokeswoman Tammy Bruce said during a press conference in Washington, DC, attended by a Shafaq News Agency correspondent.
American researchers warned in a report published by the Washington Institute for Near East Policy that passing the Popular Mobilization Forces law would undermine Iraqi security reforms and provide legal cover for factions operating outside state authority, including groups designated by the United States as "terrorist organizations."
The report, translated by Shafaq News Agency, called on the US administration to respond through multiple pressure tools, including imposing sanctions on PMF leaders close to Tehran, freezing some aspects of security cooperation with Baghdad, and linking military aid to the level of commitment to security reforms and the principle of state monopoly over arms.
The United States, through its embassy in Baghdad, also reiterated its concern over the passage of the Popular Mobilization Forces Law.
An informed political source previously revealed to Shafaq News Agency that the Popular Mobilization Forces (PMF) law, which was scheduled to be voted on during the current parliamentary session, will be postponed due to ongoing disagreements among political forces, particularly within the Shiite component, regarding the PMF's structure and future role.
The source explained that "the current version of the law aims to integrate the Popular Mobilization Forces (PMF) as an integral part of the official military establishment, with a military leadership that is hierarchically aligned, a position rejected by some influential parties within the PMF." He added that "political consensus has not yet been achieved, and the principle of mutual benefit and gains may be used to advance the law later."
This postponement reinforces the statement made by Parliament Speaker Mahmoud al-Mashhadani, who confirmed the US's explicit rejection of the law's enactment in its current form.
Political sources also told Shafaq News Agency that "the United States is exerting diplomatic pressure to prevent its passage, fearing it would establish the Popular Mobilization Forces' independence from the Iraqi army and grant legal legitimacy to factions that Washington considers terrorist groups."
This proposal is consistent with what was recently revealed in a statement by the US State Department following a call between Secretary Marco Rubio and Iraqi Prime Minister Mohammed Shia al-Sudani, who conveyed the United States' "deep concern" regarding the Popular Mobilization Forces (PMF) bill currently before the House of Representatives. Rubio emphasized that any such legislation would entrench Iranian influence and armed terrorist groups, undermining Iraq's sovereignty.
This controversy comes nearly nine years after the Iraqi parliament first passed the Popular Mobilization Forces (PMF) law in November 2016, in response to ISIS's invasion of Mosul and large swaths of Iraq. However, the previous law lacked organizational details, prompting some parties to push for a comprehensive amendment that would clearly define the PMF's position within the security apparatus.
It's worth noting that the Popular Mobilization Forces (PMF) were established by government decree in mid-2014 in response to the "sufficiency jihad" fatwa issued by Grand Ayatollah Ali al-Sistani following the fall of Mosul. Thousands of fighters from Shiite armed factions, some of whom had already been present before the fatwa, poured in.
Shiite Rivalry Heats Up Over Iraq’s Next Prime Minister Post Ahead of November Elections
At the center of the unfolding power struggle are current Prime Minister Mohammed Shia al-Sudani, Hadi al-Amiri, head of the Fatah Alliance, Nouri al-Maliki, leader of the State of Law Coalition, and Asaad al-Eidani, Governor of Basra.
As Iraq prepares for its upcoming parliamentary elections scheduled for November 11, 2025, deepening rivalries among leading Shiite factions are intensifying the contest over who will become the country’s next prime minister. According to local political sources, the competition within the Shiite camp has grown fiercer than in previous election cycles, with multiple prominent figures eyeing the top executive post.
At the center of the unfolding power struggle are current Prime Minister Mohammed Shia al-Sudani, Hadi al-Amiri, head of the Fatah Alliance, Nouri al-Maliki, leader of the State of Law Coalition, and Asaad al-Eidani, Governor of Basra. All four are considered serious contenders, and their allies have begun mobilizing political and media campaigns ahead of the vote.
According to the Iraqi Independent High Electoral Commission, preparations for the election are on track, and there are currently no indications that the vote will be postponed.
Recent reports and social media statements have shed light on internal disagreements within the Shiite Coordination Framework (SCF) — the umbrella group of mainly Shiite parties — regarding Sudani’s potential second term.
Abu Turab al-Tamimi, a senior figure in the Badr Organization, revealed that the group is working to nominate Hadi al-Amiri for the premiership.
“Amiri is a non-sectarian figure and distant from divisive politics,” Tamimi stated. He suggested that the next prime minister might emerge through a last-minute consensus, similar to the surprise nomination of Mustafa al-Kadhimi in 2020.
While election campaigns have not yet officially begun, the Shiite power centers are actively maneuvering behind the scenes to secure influence in the upcoming government. With Sudani’s tenure being both praised and criticized from within his own political camp, it remains uncertain whether he can withstand the internal opposition or if a compromise candidate will ultimately emerge.
The weeks leading up to the November elections promise to be turbulent, as Iraq’s Shiite blocs grapple with internal fractures, regional pressures, and public demand for more accountable leadership.
Kurdistan oil companies: We continue negotiations to resume the region's oil exports.
The recent targeting of some fields did not stop our work.
In its quarterly report for the quarter ending June 30, 2025, Genel Energy, a member of the global oil company APICOR operating in the region, said that work continues with parties in Baghdad and Erbil to resume oil exports from Kurdistan.
It noted that the recent attacks on some oil fields in the region have not affected the continuity of operations, with enhanced safety measures, damage assessments, and an appropriate plan to increase production.
Paul Weir, Genel's CEO, said, "The Tawke joint production project in Kurdistan delivered strong production to meet stable domestic demand during the first half of 2025. Combined with the cost reductions we implemented in 2024, our business was able to generate substantial free cash flow." Weir added that the oil operations of several international oil companies operating in the Kurdistan Region were subjected to drone attacks over two days in July, with the Tawke field among the licenses affected. He noted that no one was harmed in the attack, and that the number of workers at the sites has been reduced.
He said that the company is currently assessing the damage and developing an appropriate future production plan, while continuing to work to reduce the presence of staff on-site, enhance safety protocols, and implement the necessary repairs to resume full production. He noted that the impact of the damage and postponed production on the company's cash position is expected to be mitigated by controlling spending.
Regarding negotiations to continue exporting oil produced by oil companies in the region, the Genel CEO said that work is continuing with "our counterparts and government authorities in Baghdad and Erbil to resume oil exports from Kurdistan, and we are encouraged by the increased level of engagement between the relevant parties in recent weeks. We have noted that detailed discussions are underway regarding several key issues that could pave the way for reaching an agreement acceptable to all parties."
He continued, "Talks between the KRG, the federal government of Iraq, and the Ministry of Oil regarding the Iraq-Turkey (Ceyhan) pipeline are still ongoing, with the timing of resuming exports on acceptable terms still uncertain."
He stated that the Tawke field has achieved expected production with steady demand from the local market, resulting in daily production of 19,600 barrels during the first half of 2025 (compared to 19,510 barrels per day in the first half of 2024). The average selling price on the local market was $33 per barrel during this period (compared to $34 per barrel in the first half of 2024).
He stated that after the end of the period, drone attacks targeted several oil operations in Kurdistan, including the Tawke field, where production was temporarily halted due to damage. The operator is currently assessing the damage and working on an appropriate plan to gradually increase production. The financial impact of infrastructure damage and lost production is expected to be mitigated through prudent cost control and insurance coverage.
He added that the Tawke development license, operated by DNO, continues to deliver exceptional and consistent performance. Efficient activities and ongoing investments have helped maintain production at approximately 80,000 barrels per day (bpd) in total during the first half of 2025, with operating costs below $4 per barrel and significant reserves.
He said that stable production levels from the Tawke production-sharing contract were maintained through careful and dedicated management of subsurface operations and activities. Average total production in the first half of 2025 was approximately 78,400 bpd, significantly lower than what would have been expected had export potential been available. However, Tawke production continued to perform strongly, and domestic demand remained reliable, resulting in an average production rate of 19,600 bpd during the period, in line with the same period last year. All production was sold into the domestic market.
An economic expert reveals an agreement to process Iraqi gas in Iran.
Economic expert Nabil Al-Marsoumi revealed an agreement to send gas associated with Iraqi crude oil to Iran for processing, before returning it from the neighboring country to Iraq.
Al-Marsoumi said in a blog post published on his social media account on Tuesday that "Iraq has agreed with Iran to transfer 100 million cubic feet of associated gas daily from Maysan oil wells to Iranian territory for processing and then returning it to Iran as fuel for power plants."
The economic expert pointed out that "most of Iran's natural gas production is classified as 'free gas,' most of which is extracted from the South Pars field. Iran ranks second after Russia in the world in flaring natural gas associated with oil production, having flared 20.4 billion cubic meters of it in 2023."
According to Al-Marsoumi, "The World Bank attributed the increased flaring to a lack of investment in natural gas infrastructure and its utilization. Iran has also failed to develop and install essential equipment to collect associated gas from oil fields over the past two decades."
From Basra: Brandat Mall Time Square's profits and losses
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