ECONOMY
In this file photo taken on October 19, 2017 An Iraqi oil employee checks pipelines at the Bai Hassan oil field, west of the multi-ethnic northern Iraqi city of Kirkuk. Photo: Ahmad al-Rubaye/AFP
ERBIL, Kurdistan Region - Acting Minister of Natural Resources of the Kurdistan Regional Government (KRG) on Friday denied that oil exports from the Region were to resume this weekend, adding that a response from Turkey is still pending.
On Thursday evening, Iraq's Minister of Oil Hayyan Abdul Ghani said in a statement that Baghdad has asked Turkey to allow the resumption of oil exports through Ceyhan port starting from Saturday.
Kurdistan Region Electricity Minister Kamal Mohammed, acting as the Minister of Natural Resources, told Rudaw's Ranja Jamal in Barzan that he had spoken to Ghani about the reports that emerged his statement, suggesting that exports were certain to resume over the weekend.
“He [Ghani] said we are ready to start exports but we have not specified a date yet. We are waiting for the Turkish side to resume the oil exports,” Mohammed said.
Iraq’s State Oil Marketing Organization (SOMO) on Wednesday officially requested Turkey to resume exports through the pipeline. The following day, the KRG announced that an agreement with the Iraqi federal government has been finalized, adding that both sides were waiting for Ankara’s approval.
Turkey closed a key pipeline pumping oil from the Kurdistan Region to its port of Ceyhan in the Mediterranean on March 25 after a ruling by the International Chamber of Commerce (ICC).
Baghdad and Erbil signed an agreement on April 14 to resume oil exports to Ankara, but this has not been the case yet. Certain aspects of the deal are still expected to be resolved, while Turkey, currently busy with upcoming elections, is yet to agree to the terms.
The deal between the KRG and the federal government consists of joint exports between the KRG’s Ministry of Natural Resources and SOMO. The revenue from the exports will be stored in an account managed by the KRG under the observation of the federal government.
“All the contracts with the traders are ours, they will only export it through SOMO,” Mohammed responded when asked whether the KRG was represented in meetings with international oil companies (IOCs).
“It is the same contract and with the same companies, but with the prices of SOMO,” he added about expected changes to the contracts with the companies.
Comments
Rudaw moderates all comments submitted on our website. We welcome comments which are relevant to the article and encourage further discussion about the issues that matter to you. We also welcome constructive criticism about Rudaw.
To be approved for publication, however, your comments must meet our community guidelines.
We will not tolerate the following: profanity, threats, personal attacks, vulgarity, abuse (such as sexism, racism, homophobia or xenophobia), or commercial or personal promotion.
Comments that do not meet our guidelines will be rejected. Comments are not edited – they are either approved or rejected.
Post a comment