US welcomes Erbil-Baghdad oil deal
ERBIL, Kurdistan Region - The United States said on Thursday that it welcomes a recent agreement between Erbil and Baghdad regarding Kurdistan Region’s oil exports to the global markets through Turkey.
“We welcome the agreement between the central government and the Kurdistan Regional Government on the export of oil through the Iraq-Turkey pipeline. This outcome is the result of the hard work of Iraqi leaders for putting the needs of Iraqi citizens first,” US Department of State Principal Deputy Spokesperson Vedant Patel told reporters during a press briefing.
Kurdistan Region Prime Minister Masrour Barzani and Iraqi Prime Minister Mohammed Shia’ al-Sudani on Tuesday signed an agreement to resume the Region’s oil exports to Turkey more than ten days after it was halted following a ruling by a Paris-based arbitration court.
The International Chamber of Commerce (ICC) ruled on March 23 that Turkey had breached a 1973 pipeline agreement that obliges the Turkish government to abide by instructions issued by Iraq regarding the transport of crude oil exported from Iraq. Turkey informed Iraqi authorities that it would not allow the KRG’s oil to be loaded onto ships at Ceyhan port without permission from Baghdad.
Oil firms in the Kurdistan Region halted production or reduced output after the ruling, with some storing oil.
The KRG exported some 400,000 barrels of crude per day to global markets through Turkey before the court ruling. The Iraqi government also exported about 75,000 barrels of Kirkuk oil per day through the same pipeline.
“We welcome the agreement between the central government and the Kurdistan Regional Government on the export of oil through the Iraq-Turkey pipeline. This outcome is the result of the hard work of Iraqi leaders for putting the needs of Iraqi citizens first,” US Department of State Principal Deputy Spokesperson Vedant Patel told reporters during a press briefing.
Kurdistan Region Prime Minister Masrour Barzani and Iraqi Prime Minister Mohammed Shia’ al-Sudani on Tuesday signed an agreement to resume the Region’s oil exports to Turkey more than ten days after it was halted following a ruling by a Paris-based arbitration court.
The International Chamber of Commerce (ICC) ruled on March 23 that Turkey had breached a 1973 pipeline agreement that obliges the Turkish government to abide by instructions issued by Iraq regarding the transport of crude oil exported from Iraq. Turkey informed Iraqi authorities that it would not allow the KRG’s oil to be loaded onto ships at Ceyhan port without permission from Baghdad.
Oil firms in the Kurdistan Region halted production or reduced output after the ruling, with some storing oil.
The KRG exported some 400,000 barrels of crude per day to global markets through Turkey before the court ruling. The Iraqi government also exported about 75,000 barrels of Kirkuk oil per day through the same pipeline.