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Why the Iraq-Turkey Oil Pipeline was stopped for 2 1/2 years
For the first time since two and half years, crude oil flowed from northern Kurdistan in Iraq to Turkey on Saturday. Here are the details of the dispute which halted a piped supply of approximately 450,000 barrels per daily (bpd), in March 2023. What prompted the shutdown? The Turkish government shut down the pipeline after a ruling by the International Chamber of Commerce, which ordered that it pay Iraq $1.5 billion for damages relating to unauthorised oil exports between 2014 and 2018 from Iraqi Kurdistan. Iraq filed an arbitration request in 2014 at the Paris-based ICC regarding Turkey's role as a facilitator of exports from Kurdistan, without the consent by the federal government. Baghdad demanded $33 billion as damages. It claimed that the national oil marketing company SOMO was the sole authority to export Iraqi oil. The ICC is yet to rule on a second case of arbitration involving exports starting in 2018. Why is it important for the oil market? Iraq is OPEC’s second largest oil producer, and exports around 3.4 millions bpd through its southern ports. Iraq's Oil Minister told Kurdish radio Rudaw that the latest deal would add between 180,000 and 190,000 barrels per day (bpd) from the north. This is expected to increase to around 230,000 bpd. The U.S. had called for a restart as a higher supply would help lower crude prices. This is something that the Trump administration prioritized while simultaneously promising to reduce Iran's crude oil exports to zero. This move also aligns with recent efforts made by OPEC+ countries to increase production to gain market shares. What happens next? Eight oil companies, which represent over 90% of the production in Iraqi Kurdistan have signed agreements with Baghdad to resume exports. A trader independent will sell the crude from Ceyhan at SOMO's official price. Producers get $16 per barrel. The Kurdistan region will benefit from the return of oil exports through the Iraq Turkey Pipeline. This will relieve the economic pressure that has led to salary delays and service cuts for the public sector.
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LATAM is looking for Embraer deliveries quickly to add 30 new Brazil destinations
LATAM Airlines expects to receive its E195-E2 aircraft from Embraer "relatively soon" and to be able to add up to 30 new Brazilian destinations, according to a Friday statement by an executive. LATAM Brasil CEO Jerome Cadier said that a significant portion of the aircraft would be delivered by the end the year and another portion by 2027. The airline will decide in six months what routes the jets will serve. The Brazilian subsidiary of LATAM, a Chilean company, is the No. The No. 1 airline in terms of market share. The carrier announced Monday that it had placed a firm order of 24 E195E2 aircraft with options to purchase another 50. Both firms celebrated a major milestone with the deal. Embraer received a long-awaited Brazilian order for its second generation jets, while LATAM added regional planes to their fleet of Airbus narrowbodies, and Boeing widebodies. AIRBUS CONTEST Cadier revealed to the world last year that LATAM is considering a move. purchasing smaller jets Embraer's E2 aircraft and Airbus' A220 are direct competitors for the segment of up to 150 seats. Cadier said that the A220 was more spacious and had a longer range. This would have brought it closer to LATAM's existing narrowbody aircraft. The smaller E2, with 136 seats, is better suited for the Brazilian market. He said that the E2 was a good fit for the E2 when you consider the distances between cities and the demand of those cities. If there were many big cities, the A220 might be a better option. Cadier didn't provide any further details on destinations LATAM might add to its domestic schedule. EXPANSION PLANS LATAM expects that it will continue to expand its workforce, and is aiming for a similar level of hiring in 2024, which includes pilots and cabin staff members, this year. The company invested in a new hangar for heavy maintenance, worth 40 million reais (7.49 million dollars), at its Sao Carlos facility. The facility was opened on Friday, one day after the rivalry between Azul and Gol had ended. Talks on a merger This would have made LATAM the largest airline in Brazil by market share. Cadier stated that the merger would not have caused concern, since the antitrust watchdog CADE likely would have placed restrictions on the deal. He said, "We never thought of a scenario where a merger like this would be approved if mitigation measures were not taken."
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Ukraine: Drone incursions by Russia part of West pressure plan
The Ukrainian spy agency claimed that Russia intentionally flew drones in the airspace over NATO member Poland to test the response of the alliance, increase fatigue among member states due to its war against Ukraine, and put more pressure on the west. After NATO jets shot down Russian drones which entered Polish airspace between September 9-10, it sent a written assessment. Unidentified drones disrupted air traffic in Denmark this week. This assessment was limited to the incident that occurred in Poland. The agency stated that "Such hybrid operation likely aim to increase the pressure on Ukraine's Western partner, which could lead to: Reduced assistance for Ukraine, particularly military aid." Russia denied it intended to target anything in Poland using drones while it was attacking Ukraine. Donald Trump, the U.S. president, said immediately after the incident that the drones could have ended up in Poland by accident. The Ukrainian spy agency has ruled out this as the reason for the jamming of electronic systems and drones by Russia. UAVs (drones), not only from Ukraine, but also from Belarus, entered Poland. "Some UAVs penetrated as far as 100 km (60 mi) into Polish territory - well beyond the ranges of Ukrainian electronic warfare systems", it said. The Ukrainian agency also highlighted the large number - about 20 - of drones involved in the incident. According to the Ukrainian agency, one of the models was the Gerbera decoy, which used by Russia indicated that it did not intend to strike anything. 'PART OF BROADER PLAN In recent weeks, tensions on NATO's east flank have increased with Russia. In addition to the Polish incursion last week, Estonia also accused Russia of sending in three fighter jets, while Romania came close to shooting down drone. The Kremlin had earlier said on Friday that the threat to shoot down Russian military aircraft over Europe was reckless and aggressive, and marked an escalation in tensions near Russia's borders. The Ukrainian agency did not address the recent incidents but said that "this incident (in Poland), is part of Russia’s larger plan to expand its aggression into the countries bordering Ukraine". It is a warning for NATO and a test to see how they respond to attacks against member states. The aim is to intimidate Polish citizens. The report found that there were 10 drone violations in Moldovan airspace this year and 14 drones crashed on Romanian soil during attacks against nearby port infrastructures in Ukraine. It said that "violations of airspace in countries adjacent to Ukraine have become systemic during Russian combined air strikes on Ukrainian civilians and critical infrastructure." (Reporting and editing by Howard Goller; Tom Balmforth)
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US tightens licenses for truck drivers who are not citizens after Florida crash
After a fatal accident in Florida and an audit by the government, the U.S. Transportation Department announced Friday that it would issue an emergency regulation restricting commercial driver's licenses for non-U.S. nationals. Non-citizens won't be eligible for a driver's license unless they comply with new rules, such as an employment-based Visa, and submit to a federally mandated immigration status check. Sean Duffy, Transportation Secretary, is also taking enforcement action against California to stop it from issuing commercial driver's licenses to foreigners. Duffy stated that "licenses for dangerous foreign drivers to operate an 80,000-pound vehicle are often issued illegally." A spokesperson for the Governor of California said that the commercial drivers in the state "had a fatal accident rate nearly 40% lower than the national average." Texas, the only state that has more commercial drivers, has a rate nearly 50% higher than California. In August, Marco Rubio, the Secretary of State of the United States announced that the United States would immediately suspend the issuance all worker visas to commercial truck drivers. The previous order, which stopped new visas from being issued to non-citizens but allowed those already in the country to get a commercial license, has now tightened the rules. California has 30 calendar days to comply, or else the Trump administration withholds federal highway funds. The first year will see nearly $160 millions withheld and then doubled. Duffy stated that more than 25 percent of California's commercial licenses granted to non-U.S. residents were issued in an improper manner. This is just the latest in a long series of conflicts between the Trump Administration and California over federal funding for transportation. Duffy cited a Federal Motor Carrier Safety Administration (FMCSA) audit as evidence that "the combination of a catastrophic inability of states to comply with the law, and a broken systems has created an immediate hazard for American travelers." Duffy stated that the audit revealed drivers who had valid licenses long after their legal presence in the U.S. ended. Duffy said that Colorado, Pennsylvania South Dakota Texas and Washington had licenses which did not comply with federal regulations. The audit is not yet available. Duffy warned last month that USDOT would withhold federal funds from California, Washington and New Mexico until they adopted English proficiency requirements. Todd Spencer, President of the Owner-Operator and Independent Drivers Association, praised the actions taken to stop the issuance commercial licenses for non-residents. Spencer stated that "loopholes" in the program allowed unqualified drivers to drive on America's highways. This created unnecessary safety risks both for professional drivers as well as motorists. According to some groups, the United States is in need of up to 80.000 truck drivers. According to Florida and U.S. authorities, the federal investigation was prompted after a fatal Florida accident involving a truck driver of Indian descent who didn't speak English nor had legal authorization to enter the United States. He was issued a California license. The English proficiency standard for truckers had been in place since the early 1970s. However, Trump's April executive order reversed 2016 guidance which said that inspectors shouldn't remove commercial drivers from service if they only have a lack of English. In 2023, the Federal Motor Carrier Safety Administration reported that approximately 16% of U.S. drivers were born abroad. Reporting by David Shepardson, Editing by Chizu nomiyama and Lisa Shumaker
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The future of Serbia's oil supply is unclear as US sanctions loom
Sources told AFP that Serbia has enough crude oil and fuel to meet its demand for the near future, but the U.S. Sanctions set to take effect on October 1, cast a cloud over the nation's energy security in the long term. The Russian-owned NIS oil company said it had sufficient crude and fuel stock after Serbian president Aleksandar Vucic announced that the U.S. wouldn't extend a waiver of sanctions originally announced in January. NIS has not disclosed inventory levels or the length of time supplies will last. Four sources with knowledge of the situation said that the refinery can operate for up to two months, and still provide enough refined products to meet demand. Gazprom, a Russian company, owns 44.9% of NIS. A Gazprom investment unit has 11.3% and the Serbian Government 29.9%. Uncertainty about long-term energy security NIS is Serbia's sole oil refinery, and it supplies around 80% or more of the country's gasoline and diesel, as well as 90% of its jet fuel and heavy oil demand. The U.S. announced sanctions against Russia's oil industry on January 10, but they had been repeatedly delayed. Foreign banks could stop dealing with NIS once they become enforced. This would leave domestic banks without the necessary capacity. According to a Serbian fuel industry insider who requested anonymity, "Authorities must immediately ensure NIS access to domestic financial market and then, within the next two months, do whatever is necessary to keep Pancevo refinery operating." There is no other alternative to the refinery for the market supply. NIS is owned by Russia's Gazprom, Gazprom Neft and Gazprom. In an earlier report, it was reported that NIS struggled to find oil traders in other countries, and its former clients sought alternative fuel suppliers at home due to the impending sanctions. JANAF PIPELINE AFFECT The crude oil for NIS' Pancevo refinery, which has a capacity of 4.8 million tons/year, is transported via Croatia's JANAF pipe. JANAF confirmed Friday that it will have to stop supplying NIS once the sanctions come into effect. However, they will ask the U.S. Office of Foreign Assets Control to extend their licence. Vladislav Veselica is a JANAF member who said that NIS must now provide evidence for why the license should be extended. He said that the lawyers of the company in the U.S. will file for an extension on Friday. NIS represents more than 30% JANAF revenue. Reporting by Ivana Skularac, Robert Harvey and Edward McAllister Editing by Gareth Jones and Edward McAllister
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Russian fuel crisis leads to long queues, headaches and frustration for motorists
The long line of cars outside Sevastopol's petrol station, a port in the Russian-controlled Crimea region, revealed to drivers in Russia how difficult it is in this time of rising gasoline prices. In recent weeks, Ukraine increased drone attacks against Russian refineries and terminals for export. Motorists have felt the impact. Alexander Semin said that he waited 40 minutes in Sevastopol to fill up his tank the day before, but he claimed he wasn't "panicked." The Izvestia, citing the fuel producers' union, reported that shortages of fuel and disruptions in gasoline supply have been reported across Russia for over a month. Sergei Aksyonov acknowledged the issue in a video on Thursday, but assured motorists the gasoline stations will be fully stocked with all types within two weeks. Locals in Nizhny Novgorod, a historic city along the Volga River, thousands of kilometers north of Crimea were also experiencing the same problems. A taxi driver, who identified himself only as Alexei, said that there was no 95 or 92 petrol at either gas station. Later it appeared, and then again disappeared." The local governor of the region east from Moscow stated this week that the disruptions are due to problems in the supply chain. He reassured residents that the issues will be resolved soon. Alexei Zlobin, a Crimean driver, said that the shortages in Crimea required some creativity. He suggested that if you are having problems with petrol, take a cart. (Reporting from Sevastopol, Nizhny Novgorod. Writing by Lucy Papachristou. Editing by Hugh Lawson.
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Drone anxiety in Denmark is highlighted by the 'Shining Star in the Sky'
Billund Airport, Denmark's second largest airport, was briefly closed early Friday morning following a report about illegal drone activity. Police later identified the drone as "a star in the skies," amid increased concern over drone sightings across Denmark. In the past 24 hours, there have been more than 500 reported drone sightings in Denmark. These incidents come after the closure of Copenhagen Airport on Monday night, Scandinavia's biggest airport, because drones were involved in what Danish Prime Minister Mette Fredericksen described as "the most severe attack against Danish critical infrastructure up to now." The drones were then spotted at Aalborg and Esbjerg airports, as well as at Sonderborg and Skrydstrup, forcing authorities to scramble for a solution. Defense Minister Troels Poulsen stated that Denmark lacks the tools necessary to combat such incursions. He noted that Denmark does not possess a ground-based system of air defence and suggested even advanced measures may struggle to deal with the type drones observed. Flemming Sndorff, 60, a consultant in the field of work environment, expressed his concern over the preparedness of the country. "I am worried because we don't have any defence. We don't have anything. We have nothing. "We can't just start shooting drones down with shotguns", he said. The government's response has been criticized, especially since Denmark has pledged to increase military spending in this year. This includes plans to acquire long range weapons capable of hitting targets deep within Russia. Why should we buy these new weapons systems if we can't even defend Danish airspace?" Noa Redington, a political analyst, said that there is a growing gap between what the government says and what actually happens. According to a poll conducted by Danish TV2 this week, half of Danes have become more concerned with the security of the country following the drone sightings. Authorities have asked the public to help law enforcement by documenting any suspected drone activity. They advise them to take photos and videos of incidents without zooming to preserve context. Next week, Denmark, the current EU Presidency, will host European Leaders in Copenhagen. Ulf Kristersson, the Swedish Prime Minister, offered to send anti-drone gear to Denmark in advance of the meeting. Frederiksen was also criticized for her absence from the meeting this week, as she traveled to Greenland. Redington stated that the woman had not been clear in her communication. The government faces a major risk if the consensus on defence policy is challenged. (Reporting by Soren Sirich Jeppesen, Stine Jacobsen, Louise Rasmussen, and Tom Little. Jacob GronholtPedersen (Writing; Hugh Lawson, Editing)
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Southwest Airlines pays $18.5 Million for employees' Military Leave
Southwest Airlines has agreed to pay $18.5m to settle a class-action lawsuit accusing it of not providing paid leave for employees who take short-term military leaves. On Thursday night, a preliminary settlement was filed in the federal court of San Francisco. The judge must approve it. Southwest denied employees pay for military leave of 14 days or less, even though they were paid for other absences, such as sick leave, jury duty, and bereavement leaves. Southwest violated federal law that protects military personnel from discrimination in civilian jobs. Court documents show that approximately 2,791 eligible Southwest workers would receive an average of $4,421, once legal fees up to a third of the settlement fund have been deducted. Southwest will also pay up to 10 paid days of short-term military leaves per calendar year between 2026 and 2030. Court documents show that the Dallas-based carrier, which denied wrongdoing, believes that military leave isn't comparable to other forms or leave, but settled in order to avoid the cost and risk of litigation. Southwest has not yet responded to a request for comment. In 2019, a San Francisco judge approved an agreement worth up to 18,8 million dollars for almost 2,000 Southwest Pilots who were also denied paid leave due to short-term military duty. Huntsman v Southwest Airlines Co., U.S. District Court for the Northern District of California No. 19-00083. Reporting by Jonathan Stempel, New York; Editing by Franklin Paul
Iraq resumes Kurdish crude oil exports to Turkey following a 2-1/2 year pause
Iraq's oil minister said that crude oil began flowing through the pipeline on Saturday for the first time since two and a half years after a deal was reached to break the deadlock.
According to a ministry statement, the resumption began at 6 am local time (0300 GMT).
The ministry reported that "operations started quickly and without any technical issues."
Iraq's oil ministry told Rudaw that the agreement between Iraq's Federal Government, the Kurdistan Regional Government (KRG), and foreign oil companies operating in the area will result in 180,000 to 190,00 barrels of oil per day flowing to Turkey's Ceyhan.
The U.S. pushed for a restart that is expected to bring back up to 230,000 barrels of crude per day (bpd), at a moment when OPEC+ increases output to gain more market share.
The Kirkuk-Ceyhan Pipeline was stopped in March 2023, when the International Chamber of Commerce (ICC) ordered Turkey to pay Iraq damages of $1.5 billion for exports that were not authorised by the Kurdish Regional Authorities.
According to Iraqi officials who are familiar with the agreement, the preliminary plan agreed on Wednesday calls for the KRG commit to deliver at least 230,000 barrels per day to Iraq's SOMO state oil marketing company, while retaining an additional 50,000 barrels per day for local use.
Unknown traders will sell from the Turkish port Ceyhan at official SOMO prices.
The officials stated that for each barrel sold, 16 dollars will be transferred into an escrow fund and distributed proportionally among the producers. The rest of the revenues will go to SOMO.
DNO, a Norwegian company, said that it does not have immediate plans to ship crude oil through the pipeline. However its local customers could do so. Genel Energy and the company have stated that there is a need to address Kurdistan’s arrears of around $1 billion to producers. DNO is owed approximately $300 million.
The KRG and eight oil companies who signed the agreement have agreed to meet in 30 days after exports resume to discuss a method of settling outstanding debts. (Reporting and writing by Muayad Hamed and Maha El Dhan; editing by Muralikumar Aantharaman).
(source: Reuters)