The ongoing dispute between Iraq’s federal and Kurdistan Regional governments halts crude oil exports through Ceyhan port. While the Ministry of Oil is prepared to resume exports based on budget amendments, KRG’s local consumption requests and financial disputes complicate the matter. A Kurdish delegation plans to meet with Iraqi officials to seek a resolution.
Ongoing discord between Iraq’s federal government and the Kurdistan Regional Government (KRG) is presently impeding crude oil exports through Turkiye’s Ceyhan port, according to the Iraqi Parliamentary Oil and Gas Committee. Ali Shaddad, the committee spokesperson, stated that the Ministry of Oil is prepared to resume these exports following amendments to the budget law, which set a limit of 300,000 to 325,000 barrels per day (bpd).
Shaddad criticized the KRG for requesting an increase in local consumption from 46,000 bpd to 110,000 bpd, describing it as a “violation” of the approved budget, which hinders the potential resumption of exports. He stressed that negotiators do not possess the authority to alter existing legal obligations. The KRG has voiced concerns regarding the feasibility of maintaining the agreed export volume, which could lead to further delays in resuming operations.
He highlighted the differing perspectives between the federal government, which views oil export laws as matters of legality and technicality, and the KRG, which frames them politically. While Iraq is bound by OPEC to export 400,000 bpd from the northern region, current shipments are only reaching 300,000 bpd, contributing to financial setbacks.
Shaddad dismissed rumors regarding Iraq’s potential exit from OPEC as unfounded and detrimental, noting that such a move would severely diminish Iraq’s oil revenues and weaken its position on the global stage. In the pursuit of a resolution, a Kurdish delegation is scheduled to meet with Iraqi oil officials in Baghdad.
Financial disputes have also been identified as a significant barrier to the resumption of KRG exports. Oil companies in the region are insisting on advance payments for production and transportation, while Baghdad is reluctant to disburse funds until financial issues are resolved.
In summary, the ongoing dispute between Iraq’s federal government and the KRG continues to hinder crude oil exports through Ceyhan port, despite the Ministry of Oil’s readiness to resume operations. Differences in budget compliance and financial obligations must be resolved to facilitate the resumption of exports. Dismissing rumors about Iraq’s exit from OPEC emphasizes the necessity of maintaining a robust oil economy.
Original Source: shafaq.com
