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ERBIL, Kurdistan Region - The deputy governor of Kirkuk on Friday called on the Iraqi government to resume exports of the province’s crude oil through pipelines via Turkey, a week after a court ruling in favor of Baghdad forced Ankara to stop receiving Kurdish oil.
Ali Humadi, deputy governor of the Kurdish province of Kirkuk, told Rudaw’s Hiwa Husamaddin on Friday that they hope Baghdad can authorize restarting the flow of oil as the province receives a commission from each barrel sold. He also wants to see the province given more authority over its resource.
“Kirkuk [administration] has no authority over the oil sector and the ministry of oil… This weakens the Kirkuk administration’s power to monitor and supervise the oil sector. Sometimes we’re not even aware of the level of Kirkuk’s oil exports. Therefore, we call on the federal government to find a solution in a way that the rights of the people of Kirkuk are protected,” he said.
The Paris-based International Chamber of Commerce (ICC) arbitration court ruled on March 23 that when Turkey allowed the Kurdistan Region to independently export oil in 2014, it breached a 1973 pipeline agreement with Baghdad that obliges the Turkish government to abide by instructions issued by Iraq regarding the transport of crude oil exported from Iraq.
After the court handed down its ruling, Ankara suspended the flow of oil through its pipelines and said it would wait for permission from Baghdad before resuming. The Kurdistan Regional Government (KRG) exported some 400,000 barrels of crude per day to global markets through Turkey. The Iraqi government also exported about 75,000 barrels of oil per day through the same pipeline. The Kirkuk administration receives $5 per barrel exported to global markets as its share of petrodollar funds. Iraq’s State Oil Marketing Organization (SOMO) is in charge of the country’s oil exports.
Erbil and Baghdad reached a preliminary agreement on oil exports on Friday, an informed source told Rudaw. The deal has not been made public, but further discussions will include the KRG’s contracts with oil firms and who buys the oil.
Nahro Rawanduzi is a Kurdish lawmaker in Baghdad and the deputy head of the Iraqi parliament’s oil and energy committee. “The Iraqi government loses nearly $37 million every day, and this amount could become over $1.1 billion for a month if it gets delayed,” he told Rudaw on Friday.
He added that this will affect the Iraqi budget as well.
The Iraqi cabinet last month approved the budget for the 2023, 2024, and 2025 after nearly a year without a budget jeopardized the economy. The budget bill is yet to be passed by the parliament.
Ali Humadi, deputy governor of the Kurdish province of Kirkuk, told Rudaw’s Hiwa Husamaddin on Friday that they hope Baghdad can authorize restarting the flow of oil as the province receives a commission from each barrel sold. He also wants to see the province given more authority over its resource.
“Kirkuk [administration] has no authority over the oil sector and the ministry of oil… This weakens the Kirkuk administration’s power to monitor and supervise the oil sector. Sometimes we’re not even aware of the level of Kirkuk’s oil exports. Therefore, we call on the federal government to find a solution in a way that the rights of the people of Kirkuk are protected,” he said.
The Paris-based International Chamber of Commerce (ICC) arbitration court ruled on March 23 that when Turkey allowed the Kurdistan Region to independently export oil in 2014, it breached a 1973 pipeline agreement with Baghdad that obliges the Turkish government to abide by instructions issued by Iraq regarding the transport of crude oil exported from Iraq.
After the court handed down its ruling, Ankara suspended the flow of oil through its pipelines and said it would wait for permission from Baghdad before resuming. The Kurdistan Regional Government (KRG) exported some 400,000 barrels of crude per day to global markets through Turkey. The Iraqi government also exported about 75,000 barrels of oil per day through the same pipeline. The Kirkuk administration receives $5 per barrel exported to global markets as its share of petrodollar funds. Iraq’s State Oil Marketing Organization (SOMO) is in charge of the country’s oil exports.
Erbil and Baghdad reached a preliminary agreement on oil exports on Friday, an informed source told Rudaw. The deal has not been made public, but further discussions will include the KRG’s contracts with oil firms and who buys the oil.
Nahro Rawanduzi is a Kurdish lawmaker in Baghdad and the deputy head of the Iraqi parliament’s oil and energy committee. “The Iraqi government loses nearly $37 million every day, and this amount could become over $1.1 billion for a month if it gets delayed,” he told Rudaw on Friday.
He added that this will affect the Iraqi budget as well.
The Iraqi cabinet last month approved the budget for the 2023, 2024, and 2025 after nearly a year without a budget jeopardized the economy. The budget bill is yet to be passed by the parliament.
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