MPs in Baghdad welcome progress toward Kirkuk oil export deal
ERBIL, Kurdistan Region — The KRG and Iraqi government are expected to reach an initial agreement on exporting oil from Kirkuk to Turkey via the Ceyhan pipeline, as the Iraqi premier is describing a deal to come “soon.”
Abdullah, the head of the parliament's oil and energy committee, stressed that nothing has been formalized and there are technical issues to be worked out.
“This subject is still under discussion. The KRG has shown its approval for this on condition that the rent of these pipelines is paid and oil products like gasoline and diesel are given to the Kurdistan Region," he said.
Abdullah expressed that this will help thaw relations between Erbil and Baghdad, which are locked in a political stalemate.
“The resumption of oil export to the Ceyhan pipeline going through Kurdistan will significantly increase Iraqi [oil] revenues, especially because it produces more than 300,000 bpd. This is a big figure for increasing revenue. It also helps to decrease the budget deficit," Mihebz said, describing it as "a sacred step.”
Iraqi federal forces supported by Iran-backed Hashd al-Shaabi paramilitias took control of oil fields in the disputed or Kurdistani areas claimed by both capitals in October.
Iraqi Prime Minister Haider al-Abadi claimed on Tuesday that Iraq is in talks with both the KRG and Ankara about the resumption of oil exports from Kirkuk to Turkey's Ceyhan port through the KRG-controlled pipeline.
Oil exports were supposed to resume in January, but some "complications" by the KRG's Ministry of Natural Resources postponed it, Abadi said, hoping that the agreement will go into effect "soon."
"We as Kurdistan Regional Government, have informed them [the Iraqi government] that Kirkuk oil can be exported through Kurdistan's oil pipes and be sold, and the income to be returned to Iraqi government's treasury [so that] everyone can benefit it, but they have not done so as of now," he said.
"The Iraqi government is about to irritate us by bringing up excuses one after the other, and the closer to the elections, the stronger the game will become," he claimed.
The pipeline begins in Kirkuk, runs through the Kurdistan Region and into Turkey. It terminates at the Port of Ceyhan.
Iraq is yet to pass a 2018 budget because Kurdish and some Sunni MPs have boycotted sessions to prevent a quorum. The central and regional budgets are heavily dependent upon oil revenues.
Baghdad insists that the population in KRG-administered areas is less than 17 percent, and therefore is entitled to 12.67 percent.
Abadi said in early February that the KRG would not get its 17-percent share.
"The Iraqi government previously demanded that Khurmala [oil field in the Kirkuk block] is handed over. But I think Erbil and Baghdad will finally reach an agreement on this pipeline," Arez Abdullah, a PUK MP in Iraq's parliament told Rudaw on Thursday.
Abdullah, the head of the parliament's oil and energy committee, stressed that nothing has been formalized and there are technical issues to be worked out.
“This subject is still under discussion. The KRG has shown its approval for this on condition that the rent of these pipelines is paid and oil products like gasoline and diesel are given to the Kurdistan Region," he said.
Abdullah expressed that this will help thaw relations between Erbil and Baghdad, which are locked in a political stalemate.
Raza Mihebz, an Iraqi MP also on the energy committee, welcomed the resumption of exports to global markets.
“The resumption of oil export to the Ceyhan pipeline going through Kurdistan will significantly increase Iraqi [oil] revenues, especially because it produces more than 300,000 bpd. This is a big figure for increasing revenue. It also helps to decrease the budget deficit," Mihebz said, describing it as "a sacred step.”
Iraqi federal forces supported by Iran-backed Hashd al-Shaabi paramilitias took control of oil fields in the disputed or Kurdistani areas claimed by both capitals in October.
Kurdish security forces took control of many of the oil fields in the disputed areas after Iraqi federal forces abandoned them after 2014.
Iraqi Prime Minister Haider al-Abadi claimed on Tuesday that Iraq is in talks with both the KRG and Ankara about the resumption of oil exports from Kirkuk to Turkey's Ceyhan port through the KRG-controlled pipeline.
Oil exports were supposed to resume in January, but some "complications" by the KRG's Ministry of Natural Resources postponed it, Abadi said, hoping that the agreement will go into effect "soon."
KRG Deputy PM Qubad Talabani touched on oil while attending a KRG Ministry of Higher Education and Scientific Research event on Wednesday.
"We as Kurdistan Regional Government, have informed them [the Iraqi government] that Kirkuk oil can be exported through Kurdistan's oil pipes and be sold, and the income to be returned to Iraqi government's treasury [so that] everyone can benefit it, but they have not done so as of now," he said.
Talabani also hinted that the Iraqi government is politicizing the issue ahead of May 12th elections.
"The Iraqi government is about to irritate us by bringing up excuses one after the other, and the closer to the elections, the stronger the game will become," he claimed.
The pipeline begins in Kirkuk, runs through the Kurdistan Region and into Turkey. It terminates at the Port of Ceyhan.
Iraq is yet to pass a 2018 budget because Kurdish and some Sunni MPs have boycotted sessions to prevent a quorum. The central and regional budgets are heavily dependent upon oil revenues.
Baghdad insists that the population in KRG-administered areas is less than 17 percent, and therefore is entitled to 12.67 percent.
Abadi said in early February that the KRG would not get its 17-percent share.
In addition to deputy PM Talabani's PUK and the KDP, opposition parties in the KRG are not satisfied with Abadi's lack of commitment to resolving issues, after promises to do so.