Iraq And Kurdistan Close To Deal On Oil Exports

By Julianne Geiger - May 04, 2023

Baghdad and Erbil are set to reach an agreement over crude oil exports from Iraq’s semi-autonomous Kurdistan region within the next two weeks, Iraq’s oil minister said on Wednesday.

“All indicators are positive,” Iraq’s oil minister, Hayyan Abdul Ghani, said this week. “Regarding the agreement with the Region, we have reached the final stage and hopefully we will reach the final agreement on the exportation of crude oil within a maximum of two weeks,” he said, adding that all points have been agreed on except how Iraq will deal with the bank account where Erbil’s oil money is kept.

Iraq’s Prime Minister, Mohamed Shia al-Sudani, said weeks ago that Iraq would restart the export of crude oil from the Kurdistan region within days after the deputy speaker of the Iraqi parliament said that Erbil and Baghdad had ironed own most of their differences with regard to Kurdistan region’s oil exports and that all that was needed was to hammer out some details.

Today or tomorrow, we will go to sign the agreements with SOMO and the oil companies to resume exports,” PM Al-Sudani told Rudaw in mid-April. But the oil has not resumed flowing.

Kurdistan’s crude oil exports – around 400,000 to 450,000 bpd shipped through an Iraqi-Turkey pipeline to Ceyhan and then on tankers to the international markets – were halted in late March by the federal government of Iraq.

A few days earlier, the International Chamber of Commerce ruled in favor of Iraq against Turkey in a dispute over crude flows from Kurdistan. Iraq argued that Turkey shouldn’t allow Kurdish oil exports via the Iraq-Turkey pipeline and Ceyhan without approval from the federal government of Iraq.

The court ruled that Turkey should pay Iraq compensation of $1.5 billion for what now appears to be illegal exports of oil over five years. Turkey then shut off the Kirkuk-Ceyhan pipeline in response, which suspended the flow of oil from the Kurdistan region. Kurdistan’s oilfields also shut down due to a lack of storage.

The negotiations between Baghdad and Erbil are focused on who gets more control over the oil flows, with both sides being forced to make concessions so exports can resume.

By Julianne Geiger for Oilprice.com

TotalEnergies To Launch $27 Billion Energy Project In Iraq This Month

By Alex Kimani - May 03, 2023, 

French oil and gas multinational TotalEnergies (NYSE:TTE) has finally reached an agreement with the government of Iraq to start a long-delayed $27 billion energy project in two weeks, Iraq's oil minister Hayan Abdel-Ghani said on Wednesday. 

The two parties first struck the deal back in 2021 that would see Total build four oil, gas, and renewables projects in southern Iraq over 25 years with an initial investment of $10 billion. Unfortunately, the giant project was shelved amid disputes and squabbling between Iraqi politicians over the terms of the deal.

However,  last month Iraq agreed to a smaller 30% stake in the project, setting in motion a deal that could lure foreign investment back into the country. After years of instability, Iraq has been enjoying a period of relative stability, increasing the chances of foreign investors returning to the country.

"The government of Iraq confirmed the whole contract, no modification at all ... so that was for me more than good news," Total Chief Executive Patrick Pouyanne has told Reuters.

Last year, widespread fighting broke out between Iraqi Shiite cleric Moqtada al-Sadr’s loyalists and Iraq’s military after the cleric announced that he would withdraw from politics. Military forces fought with al-Sadr’s supporters, with the police responding with tear gas and physical fights with protesters. 

The cleric’s decision to quit politics came in the wake of a political crisis that has left the country without a new government, prime minister, or president for months.

The situation in Iraq, which pumps more than 4 million barrels per day (bpd), exacerbated oil supply fears and pushed prices higher. However, the ongoing ceasefire suggests that the country’s oil will continue reaching global markets unhindered.

By Alex Kimani for Oilprice.com

Turkey Makes Huge 1-Billion-Barrel Oil Discovery

By Charles Kennedy - May 04, 2023

Turkish Petroleum (TPAO) has made the largest crude oil discovery onshore Turkey with a find estimated to hold 1 billion barrels of crude, the Turkish company said.

The discovery was made in the southeastern province of Sirnak, which borders the semi-autonomous Kurdistan Region in Iraq and Syria.

Turkish Petroleum has drilled an exploration well and has encountered more than 162 meters of light oil-bearing reservoir with API gravity of 41.

The well already produces around 10,000 barrels of oil per day, TPAO said.

TPAO plans to drill back-to-back appraisal wells and conduct well tests to have a full-field development plan until the end of this year. Additional exploration activities are planned for the second half of 2023.

The production target is set for 100,000 bpd, which would be more than double Turkey’s oil production.

The exploration success is expected to help achieve Turkey’s energy independence, TPAO said in a statement.

Currently, Turkey depends mostly on oil imports for its consumption.

The country is also targeting natural gas independence with recent huge finds of gas in the Black Sea and the start of gas transmission from the Sakarya Gas Field last month.

In April, Turkish Energy and Natural Resources Minister Fatih Dönmez told broadcaster CNN Türk that the volumes of natural gas that Turkey had found so far in the Black Sea were worth in excess of $500 billion. The huge gas finds would be enough to supply all households in the country for 35 years, or to cover total Turkish natural gas consumption, including from industry, for 15 to 20 years, the minister added.

The newly developed gas fields are set to go a long way toward Turkey’s energy diversification. So far, the country has mostly relied on imports to procure energy supply. The Russian invasion of Ukraine has hit Turkey’s economy and energy prices hard and has made energy imports much more expensive for Ankara.  

By Charles Kennedy for Oilprice.com

5 Oil Producing Nations Ask To Join BRICS Alliance

By ZeroHedge - May 02, 2023

• Saudi Arabia, the UAE, Algeria, Egypt, Bahrain, and Iran have formally asked to join the BRICS group of nations.
• 
  
• BRICS will hold its annual summit in Cape Town during the first week of June. 
• 
  
• Bloomberg: BRICS is expected to soon surpass the US-led G7 states in economic growth expectations.

Saudi Arabia, the UAE, Algeria, Egypt, Bahrain, and Iran have formally asked to join the BRICS group of nations as it prepares to hold its annual summit in South Africa.

In total, 19 nations have expressed interest in joining the emerging-markets bloc of Brazil, Russia, India, China, and South Africa, according to Anil Sooklal, South Africa’s ambassador to the group.

“What will be discussed is the expansion of BRICS and the modalities of how this will happen... Thirteen countries have formally asked to join, and another six have asked informally. We are getting applications to join every day,” the South African official told Bloomberg earlier this week.

BRICS will hold its annual summit in Cape Town during the first week of June. The foreign ministers from all five member states have confirmed their attendance.

Earlier this month, Bloomberg revealed that BRICS is expected to soon surpass the US-led G7 states in economic growth expectations.

Per their analysis, while G7 and BRICS nations each contributed equally to global economic growth in 2020, the western-led bloc’s performance has recently declined. By 2028, the G7 is expected to make up just 27.8 percent of the global economy, while BRICS will make up 35 percent.

The estimations came just a few weeks after the Deputy Chairman of Russia’s State Duma, Alexander Babakov, revealed that BRICS is working on developing a “new currency” that will be presented at the organization’s upcoming summit.

BRICS member states account for over 40 percent of the global population and around a quarter of the global GDP.

The interest from Global South nations to join the bloc comes at a time when more and more governments move away from the US dollar.

The greenback has become more unreliable for dollarized economies due to rising interest rates regulated by the US Federal Reserve (FED) and the bank’s weaponization of the dollar through financial sanctions.

By The Cradle via Zerohedge.com

What New York’s Ban On Natural Gas Stoves And Heaters Means For The Country

By Felicity Bradstock - May 04, 2023

• On Wednesday, New York became the first state in the country to pass a ban on gas stoves, furnaces, and propane heating in new buildings.
• 
  
• The new law is expected to help avoid 6.1 million metric tons of carbon emissions by 2040 and is part of New York’s target to source 70 percent of its electricity from renewable sources.
• 
  
• The ban is likely to face legal challenges, similar to the legal troubles that cities in California have run into in their attempts to ban natural gas stoves.

Over the last few years, there has been a lot of talk about banning gas installations in new residential buildings, but New York is the first state to put this plan into action. The state has now passed a ban on gas stoves, furnaces, and propane heating in new buildings, in favor of environmentally-friendly appliances, such as heat pumps and induction stoves. This could be the first of many states to make the switch, with plenty of interest elsewhere in the country.

The New York state law is set to come into effect in 2026 for new buildings under seven stories, and 2029 for taller buildings. News of the ban follows weeks of negotiations, with lawmakers including the initiative in the $229 billion state budget deal. This comes after a 2021 law in New York City banning natural gas hook-ups in new buildings from late 2023.

In 2020, New York was the sixth-largest natural gas-consuming state, with gas providing 46 percent of the state’s electricity. In addition, in 2021, three out of five households relied on natural gas for heating. The aim is for New York City and state to achieve net-zero carbon emissions in their buildings. The new law is expected to help avoid 6.1 million metric tons of carbon emissions by 2040. This is part of New York’s target to source 70 percent of its electricity from renewable sources, including solar, wind, and hydropower by 2030, and have a net-zero emissions electricity sector by 2040.

The law is also expected to include exceptions for emergency generators needed to power backup generators, hospitals, laundromats, and commercial kitchens. Further, it would not affect existing residential housing. Governor Kathy Hochul stated last week, “Our budget prioritizes nation-leading climate action that meets this moment with ambition and the commitment it demands.” This ban is expected to encourage other states to introduce their own laws on natural gas in residential and commercial buildings, with several U.S. cities having already introduced similar initiatives.

In 2019, Berkeley, California, changed its building code to ban gas hook-ups in new buildings, becoming the first U.S. city to do so. The city council acted in response to the climate emergency, with almost a third of Berkeley’s emissions coming from natural gas. The bill passed unanimously after the city made its case for the need to curb gas use. Sasan Saadat, a senior research and policy analyst at Earthjustice, an environmental group that worked with the city, stated “We weren’t going to make a ton of progress reducing our greenhouse gas emissions if every time we built new housing, we were actually connecting more and more buildings to the gas system.”

Other cities quickly introduced their own legislation to curb gas use, with many responding to constituent pressure to act on climate change. Although gas stoves have recently drawn media attention due to the negative effect they can have on health in certain settings, most city councils were focused on the environmental impact of burning gas. By the beginning of the year, 99 cities and counties across the U.S. had introduced decarbonization measures, with 82 requiring electrical appliances, instead of gas, in new buildings. Others require “electric readiness,” which is expected to allow buildings to easily make the switch from gas to electric. Several cities in California, as well as Washington D.C., Cambridge, and Seattle have introduced varying bans on gas appliances.

However, many of the cities and states looking to introduce bans on new gas hook-ups have faced opposition from both politicians and residents. A recent federal appeals court decision could halt plans for gas appliance bans after a three-judge panel of the U.S. 9th Circuit Court of Appeals ruled in favor of the California Restaurant Assn., which filed a lawsuit against Berkeley’s ban on natural gas piping in new buildings in 2021, reversing a district court that dismissed the case. The decision responds to the 1970s Federal Energy Policy and Conservation Act, which outlaws state and local governments from enforcing their own appliance energy standards. It seems somewhat ironic the ban could be stopped because of an Act that was introduced to promote energy efficiency. However, the lawsuit is having the intended effect of fossil fuel lobbyists by deterring other cities from introducing similar bans. 

And the latest move from New York is already facing opposition, with a recent poll suggesting that 53 percent of all New York respondents oppose the phasing out gas stoves in new homes. It is highly probable that the New York government will also face legal challenges over the ban. But with the introduction of the Biden Administration’s Inflation Reduction Act last year, as well as supporting climate legislation, cities and states across the U.S. are likely to continue fighting to decarbonize in support of the country’s green transition.

By Felicity Bradstock for Oilprice.com

Team Holtec signs agreements with Korean financial firms

03 May 2023

Two South Korean national financial institutions - Korea Trade Insurance Corporation (K-Sure) and the Export-Import Bank of Korea (KEXIM) - have each entered into agreements with Holtec International and Hyundai Engineering & Construction to provide financial support for SMR-160 projects around the world.

From Left to Right: Hyundai E&C President and CEO Young-joon Yoon; Holtec President and CEO Kris Singh; Korean Minister of Trade, Industry and Energy Chang-yang Lee; and K-Sure President and Chairman Inho Lee (Image: Holtec)

Holtec participated in the Korea-US Advanced Industry and Clean Energy Partnership Event hosted by Korea's Ministry of Trade, Industry and Energy in Washington, DC on 25 April.

The signing of a collaboration agreement with Hyundai E&C and K-Sure was announced during the event. The agreement calls for "an expansion of nuclear power plant deployments to underpin the global growth of clean energy and decarbonisation of the environment", Holtec said.

"It is expected that this agreement will accelerate the global advancement of the Korean nuclear power plant business by establishing a multilateral support system of public financial institutions for technical cooperation between Hyundai E&C and Holtec," Hyundai E&C said.

On the same day, Holtec and Hyundai E&C signed a financial support agreement with KEXIM to "facilitate the adoption of SMR-160 reactors around the globe promoting the urgently needed decarbonisation of the environment".

From Left to Right: Holtec President and CEO Kris Singh; KEXIM President and Chairman Hee-sung Yoon; and Hyundai E&C President and CEO Young-joon Yoon (Image: Holtec)

Holtec's 160 MWe factory-built SMR is a pressurised light-water reactor using low-enriched uranium fuel. The reactor's core and all nuclear steam supply system components would be located underground, and the design incorporates a wealth of features including a passive cooling system that would be able to operate indefinitely after shutdown. No active components, such as pumps, are needed to run the reactor, which does not need any on-site or off-site power to shut down and to dissipate decay heat.

The design has completed the first phase of the Canadian Nuclear Safety Commission's three-phase pre-licensing vendor design review and is undergoing pre-licensing activities with the US Nuclear Regulatory Commission. Holtec has also applied for a Generic Design Assessment of the SMR-160 in the UK.

In November 2021, Holtec and Hyundai E&C signed a teaming agreement under which Hyundai E&C will perform the detailed design of the balance of plant and prepare the full plant construction specification for the SMR-160, which Holtec has been developing since 2010. The Korean company will also develop the integrated 3D plant model for construction using its Building Information Modelling management process. The partnership also provides for project delivery rights for Hyundai, subject to certain provisions.

Last October, the two companies agreed to accelerate the programme to complete the balance of plant design of the remaining systems and structures for the SMR-160.

At the same event in Washington, DC, Doosan Enerbility and KEXIM signed a memorandum of understanding to cooperate with NuScale Power, while SK and Korea Hydro & Nuclear Power agreed to collaborate with TerraPower.

"The impressive show of support to the global cause for expansion of clean energy generation to bend the curve of environmental pollution that has been exhibited today by South Korea's government and its dynamic industry bodes well for humankind's struggle against global warming and degradation of our fragile habitat," said Holtec President and CEO Kris Singh. "We hope that the vigour of the US-ROK partnership on display today in Washington, DC will help energise support for nuclear energy in other industrial nations."

Researched and written by World Nuclear News

Hot functional testing complete at Vogtle 4

02 May 2023

Completion of the testing - which confirms that the reactor is ready for fuel load - is a major step towards commercial operations for the second AP1000 reactor at the site. The unit is projected to enter service towards the end of this year or early in 2024.

The Vogtle site will soon be home to four operating reactors (Image: Southern Company)

Hot function testing, during which plant systems are brought to normal operating pressure and temperature, without nuclear fuel in the reactor, to demonstrate the systems will operate on an integrated basis as designed, began at Vogtle 4 in March.

Vogtle 4 is one of two Westinghouse AP1000 units being built at the site: unit 3 began supplying electricity to the grid in early April. Construction of unit 4 began in November 2013, and timelines issued by the company earlier this year have suggested that fuel loading at unit 4 is envisaged in June.

Hot functional testing was completed at unit 4 in "significantly less time" than the same tests had taken at unit 3 thanks to lessons learned from the first unit, Georgia Power Chairman, President and CEO Kim Greene said. "It's incredible that these new units will provide our state with zero-emissions energy for the next 60 to 80 years, and that's thanks to the dedication of the teams at the site to getting these units built, and built right," she added.

Georgia Power said its team will now focus on completing the remaining work necessary to submit documentation to the Nuclear Regulatory Commission (NRC) that all inspection, tests and analyses have been performed and all acceptance criteria, collectively known as ITAACS, have been met as required under the unit's combined operating licence. Each ITAAC closure notice must be verified by the NRC before fuel can be loaded into the reactor.

Vogtle 3 and 4 are co-owned by Georgia Power, Oglethorpe Power, MEAG Power and Dalton Utilities, and will be operated by Southern Nuclear. The site, near Waynesboro in Georgia, is already home to two commercially operating pressurised water reactors. Southern Nuclear and Georgia Power are both subsidiaries of Southern Company.

Researched and written by World Nuclear News

State takeover of EDF resumes after appeal dismissed

03 May 2023

The French State has requested the country's Financial Markets Authority (AMF) reopens the simplified public tender offer for the outstanding shares of EDF after the Paris Court of Appeal dismissed a claim lodged by minority shareholders in EDF challenging the deal.

(Image: EDF)

EDF's board of directors on 27 October last year approved an offer by the French state to renationalise the company by increasing its shareholding in EDF from 84% to 100% in a deal worth almost EUR10 billion (USD11 billion).

The following month, the AMF approved the simplified public tender offer filed by the French state for the equity securities of EDF, with an offer price of EUR12.00 per EDF share and EUR15.52 per OCEANE (existing shares not already held by the French state). The offer was open from 24 November to 22 December inclusive.

A group of minority shareholders took the case to the Paris Court of Appeal arguing that the price offered to EDF shareholders was too low. The employee shareholding fund Actions EDF and the non-profit organisations Energie En Actions and Association pour la Défense des Actionnaires Minoritaires are seeking the annulment of the clearance decision on the offer.

The AMF announced in late-January that the simplified public tender offer will be closed on 3 February, pending the decision of the Paris Court of Appeal.

The Court has now dismissed the claim, confirming the validity of the offer with regard to the applicable legislative and regulatory provisions.

The AMF said that, in accordance with the French State's undertakings, the offer will be "reopened for a period of 10 trading days from 4 May 2023 to 17 May 2023 included".

"Following this period, the French State will request the implementation of a squeeze-out procedure for EDF shares and OCEANEs, since the legal and regulatory conditions for such implementation will be met," EDF said.

Researched and written by World Nuclear News

BRAZIL

Eletronuclear seeks to end block on Angra 3 works

04 May 2023

Eletronuclear said it was seeking a "constructive dialogue" with the municipal government after it was ordered to stop work on Angra 3 - a unit whose construction only resumed in November after a seven year gap.

Angra nuclear power plant is on the coast south of Rio de Janeiro

 (Image: Eletronuclear)

In a statement, Eletronuclear said it was "committed to reversing the embargo on the Angra 3 works, seeking a constructive dialogue with the Angra dos Reis City Hall to clarify the issues presented and find a solution that allows the resumption of activities at the construction site".

It added: "The company understands the importance of this project for the country and is committed to contributing to the sustainable development of Costa Verde in the state of Rio de Janeiro. It is essential to point out that the stoppage of the Angra 3 works has consequences that go beyond the scope of the completion of the plant, affecting the economy and the well-being of the local population. Thus, Eletronuclear wants to resume the construction of the unit as soon as possible, guaranteeing the benefits that its completion will bring to the region."

The city government of Angra dos Reis ordered a halt to the work on Angra 3 at a meeting on 19 April. In a statement at the time, Mayor Fernando Jordão said "I authorised this embargo because Eletronuclear is executing a project that is not in accordance with what the municipality approved" and Mário Reis, president of the Municipal Environment Institute, said "they increased the circulation area in one of the units, changing the project ... the process is being analysed and a new permit will be issued when the modifications are approved".

The mayor also said that Eletronuclear had yet to pay the "socio-environmental compensation" it had committed to pay in 2009, which the authority says amounts to BRL264 million (USD52 million), saying: "We have to resolve this issue so that we can issue the construction permit for Angra 3."

The latest halt to construction to Angra 3, which is on the coast about 70 miles south of Rio de Janeiro, comes just six months after work finally restarted following a seven year break.

Brazil currently has two reactors - Angra 1 and Angra 2 - which generate about 3% of the country’s electricity. Work on the Angra 3 project - to feature a Siemens/KWU 1405 MW pressurised water reactor - began in 1984 but was suspended two years later, before construction began. The scheme was resurrected in 2006, with first concrete in 2010. But, amid a corruption probe into government contracts, construction of the unit was halted for a second time in 2015, when it was 65% complete. At the time of the project’s revitalisation, Eletronuclear’s aim was to start operations by the end of 2026.

Brazil also began a process to identify sites for new nuclear power plants last year. The country has historically relied on hydro for as much as 80% of its electricity but changes in rainfall patterns produced droughts which reduced this to 65% by 2018. Brazil’s National Energy Plan to 2050 says the country aims to add 10 GW of nuclear capacity in the next 30 years.

Researched and written by World Nuclear News