Disputes between Iraq’s federal government and the KRG are halting crude oil exports via Turkey’s Ceyhan port. The Iraqi Parliamentary Oil and Gas Committee reports the federal Ministry of Oil is prepared to resume exports within set limits. The KRG’s request to increase local consumption is seen as a violation. Financial disagreements also persist, obstructing progress.
The ongoing conflict between Iraq’s federal government and the Kurdistan Regional Government (KRG) has led to a suspension of crude oil exports through Turkey’s Ceyhan port. According to the Iraqi Parliamentary Oil and Gas Committee, the federal Ministry of Oil has signaled readiness to resume exports after amendments to the latest budget law that set export limits between 300,000 and 325,000 barrels per day.
Ali Shaddad, the spokesperson for the committee, criticized the KRG’s proposal to increase local consumption from 46,000 to 110,000 barrels per day, deeming it a violation of the approved budget. He emphasized that negotiators currently lack the authority to alter existing legal stipulations. The KRG maintains it is impossible to meet the agreed export volumes, which raises concerns about ongoing delays.
Shaddad remarked that while the Iraqi federal government regards oil export regulations as legal and technical issues, the KRG views them through a political lens. He highlighted Iraq’s commitment under OPEC to export 400,000 barrels daily from the north, yet only 300,000 barrels have been dispatched, resulting in financial losses for the region.
Notably, rumors regarding Iraq’s exit from OPEC have been repudiated. Shaddad characterized such claims as “false and harmful,” indicating that a departure from OPEC would decrease Iraq’s oil revenue and impair its international position. A Kurdish delegation is anticipated to meet with Iraqi oil officials in Baghdad shortly to pursue a resolution to the current impasse.
Recent reports suggest that financial disputes continue to hinder the resumption of exports from Kurdistan, as oil firms in the region are demanding advance payments for production and transport. Meanwhile, Baghdad is refusing to transfer funds until previous financial matters are settled.
In summary, unresolved disputes between Iraq’s federal government and the Kurdistan Regional Government are impeding crude oil exports through Ceyhan port. Criticism of the KRG’s consumption demands and differing perspectives on export regulations contribute to the ongoing stalemate. Additionally, the legitimacy of Iraq’s position within OPEC remains unchallenged despite speculation of a potential exit. A meeting between the KRG and Iraqi officials is hoped to address these financial disputes and expedite the resumption of exports.
Original Source: shafaq.com
