Saturday, June 22, 2024

Baghdad

Baghdad, Erbil agree to resume Kurdistan’s oil exports

 Baghdad, Erbil agree to resume Kurdistan’s oil exports

The facilities of Kurdish oil company KAR, in Erbil, Iraq. Photo: Reuters

Baghdad (IraqiNews.com) – The Iraqi Prime Minister, Mohammed Shia Al-Suadni, announced on Tuesday that an agreement has been reached to resume oil exports from the Kurdistan region of Iraq, the Iraqi News Agency (INA) reported.

During a joint press conference with the Prime Minister of the Kurdistan region, Masrour Barzani, Al-Sudani confirmed that the authorities should immediately abide by the agreement with Erbil.

The Iraqi Prime Minister clarified that the agreement reflects the serious desire of the federal government and the regional government to overcome all obstacles ongoing for years.

Al-Sudani explained that the legislation of the oil and gas law will address the issue of Kurdistan’s oil exports standing since the adoption of the Iraqi constitution.

“Any delay in oil exports from the Kurdistan region clearly affects the total expected revenues in the 2023 budget,” Al-Sudani stated.

“This agreement is a temporary agreement until the budget is approved,” the Prime Minister added.

This agreement took place after Baghdad won last month an international arbitration case, which led to the suspension of the Kurdistan region’s exports of crude oil through the Turkish port of Ceyhan.

Kurdistan exports oil through its pipeline on the northern Iraqi border, where it enters Turkey and pumped to the Turkish port of Ceyhan on the Mediterranean coast.

Kurdistan began exporting crude oil away from the federal government in 2013, but Baghdad repeatedly denounced this behavior.

Iraq was forced to suspend about 450 thousand barrels per day of crude exports, or 0.5 percent of global supplies, from the Kurdistan region last week following the ruling issued by the International Court of Arbitration of the International Chamber of Commerce to stop exporting oil under the supervision of the regional government to Turkey through Ceyhan.

The halt contributed to an increase in oil prices in the past days, to return to nearly 80 USD per barrel.