The dispute between Iraq’s federal government and the Kurdistan Regional Government has halted crude oil exports via Turkey’s Ceyhan port. The Ministry of Oil is ready to resume exports, but disagreements over budgetary provisions and local consumption rates are causing delays. Iraqi officials stress adherence to OPEC obligations amidst speculation about Iraq potentially leaving the organization, which was dismissed as harmful.
Disputes between Iraq’s federal government and the Kurdistan Regional Government (KRG) are currently impeding crude oil exports through Turkey’s Ceyhan port, as highlighted by the Iraqi Parliamentary Oil and Gas Committee. The Ministry of Oil has reportedly finalized all necessary procedures to recommence exports, ready to resume after recent amendments to the budget law that specify export volumes between 300,000 and 325,000 barrels per day (bpd).
Ali Shaddad, spokesperson for the Committee, criticized the KRG’s proposal to raise local consumption from 46,000 bpd to 110,000 bpd, labeling this demand a “violation” of the approved budget. He emphasized that the ongoing dispute is a significant barrier to resuming exports via Ceyhan, noting that negotiators do not possess the authority to alter established legal regulations.
The KRG contends that fulfilling the agreed export volume is impractical, which may lead to further delays. Shaddad urged Prime Minister Mohammed Shia Al-Sudani’s government to adhere strictly to budgetary guidelines, emphasizing that the federal government perceives oil export laws as legal and technical obligations, whereas the KRG views them through a political lens.
He also pointed out that Iraq is obligated under OPEC to export 400,000 bpd from the north, but current shipments only reach 300,000 bpd, which results in financial losses. However, speculation regarding Iraq’s potential exit from OPEC has been firmly dismissed. Shaddad characterized such claims as “false and harmful,” noting that leaving OPEC could significantly decrease Iraq’s oil revenues and damage its global position.
Soon, a Kurdish delegation is expected to meet with Iraqi oil officials in Baghdad in an effort to address the ongoing issues. Additionally, financial disputes remain a critical hurdle to resuming exports from Kurdistan, as oil companies in the region require advance payments for production and transport, while Baghdad hesitates to transfer funds until existing financial disagreements are resolved.
The ongoing conflict between Iraq’s federal government and the KRG continues to obstruct oil exports through Ceyhan, with disputes over budgetary provisions and local consumption levels. Although the Ministry of Oil is prepared to resume operations, the KRG’s demands pose significant challenges. This situation emphasizes the complexity of political and economic negotiations between the two governments and the broader implications for Iraq’s position within OPEC.
Original Source: shafaq.com
