• 3 hours UK On Track To Approve Construction of “Mini” Nuclear Reactors
  • 7 hours LNG Glut To Continue Into 2020s, IEA Says
  • 9 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 12 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 14 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 15 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 4 days New Video Game Targets Oil Infrastructure
  • 4 days Shell Restarts Bonny Light Exports
  • 4 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 5 days Rosneft Signs $400M Deal With Kurdistan
  • 5 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 6 days Conflicting News Spurs Doubt On Aramco IPO
  • 6 days Exxon Starts Production At New Refinery In Texas
  • 6 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 7 days VW Fails To Secure Critical Commodity For EVs
  • 7 days Enbridge Pipeline Expansion Finally Approved
  • 7 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 7 days OPEC Oil Deal Compliance Falls To 86%
Alt Text

Norway Unfazed By Peak Oil Concerns

Many analysts and industry experts…

Alt Text

Europe Stands Divided On Gazprom’s Nord Stream 2 Pipeline

Gazprom’s Nord Stream 2 megaproject…

Alt Text

Draw In Crude Inventories Lifts Oil Prices

Oil prices reversed course on…

Claude Salhani

Claude Salhani

Claude Salhani is the senior editor with Trend News Agency and is a journalist, author and political analyst based in Baku, specializing in the Middle…

More Info

All’s Fair In Love And War And Oil

All’s Fair In Love And War And Oil

An Iraqi Kurdish crude oil tanker has been seen floating off the coast of Israel after offloading its cargo, ship tracking data has shown.

If true, the transaction would be in open defiance of Baghdad, with whom Israel has no diplomatic or commercial relations. Furthermore, any commercial transaction between an Arab country and Israel violates the ruling of the Arab Boycott Bureau that bans all commercial exchanges with the Jewish state.

But it would not be the first time that Kurdish oil has found its way into the Israeli market.

Iraqi Kurdistan, although autonomous, is still in principle supposed to conduct its oil transactions through Baghdad. Selling into the oil market directly and independently of Baghdad provides the Kurds in northern Iraq with much needed funds. It also helps the Kurds move away from Baghdad and toward independence, which it has made no secret of wanting.

This is something that none of Iraq’s neighbors are happy to see, as they each have their own Kurdish minorities who might be tempted to try and follow their Iraqi brethren down the road to independence. Turkey, of course, has a very large problem with its own Kurdish population, as do Syria and Iran, to a lesser degree.

This recent development adds yet another headache to the Iraqi government’s list of monumental problems, starting with the loss of a huge chunk of its territory and authority to the Islamic State, which has declared a new Islamic Caliphate created and managed by a self- proclaimed caliph.

At this point in time, it’s impossible to identify the Kurdish oil’s destination or buyer. A previous delivery of oil from Iraqi Kurdistan occurred last June. While some Arab countries do maintain commercial exchanges with Israel, albeit very discreet ones, officially at least, the Arab world for the most part continues to shun Israel.

The Kurdistan Regional Government (KRG) has in the past denied selling oil to Israel “directly or indirectly.” They have not commented on news reports of the Israeli shipment.

There have also been numerous rumors in the past of a number of transactions between the Kurds and Israel. Israeli Prime Minister Benjamin Netanyahu and several other high-ranking Israeli officials have even publicly expressed support for an independent Kurdistan.

Iraq's central government in Baghdad has repeatedly called independent Kurdish exports "smuggling," saying only state marketer SOMO has the right to sell Iraqi oil. The KRG says the Iraqi constitution allows it to sell oil independently.

Angered by the reported sale of oil to Israel, Baghdad has tried repeatedly to prevent the KRG from selling oil to Israel and has cut the Kurds’ budget allotment as punishment. The Kurds have been asking Baghdad to release the funds, which are needed to help in the fight against the Islamic State.

Ship tracking data indicates that the Kamari, the oil tanker in question, switched off its satellite transponder on Aug. 17. Two days later, it reappeared on radar close to the Israeli shore.

More than 7.5 million barrels of Kurdish oil have flowed through the independent pipeline connecting northern Iraq to the Turkish port of Ceyhan.

Turkish officials and industry sources said the capacity of the Kurdish pipeline has been upgraded to 200,000 barrels per day (bpd) and there are plans to increase it to 250,000 bpd soon.

The Iraqi government has already succeeded in stopping one tanker from reaching its destination; the United Leadership has been idling off the coast of Morocco for almost three months.

By Claude Salhani of Oilprice.com




Back to homepage


Leave a comment
  • Philip Branton on August 27 2014 said:
    Claude,

    Lets not forget the tanker sitting in the gulf of mexico.
  • Claude Salhani on August 27 2014 said:
    but of course. thank you for pointing it out.
  • Philip Branton on September 04 2014 said:
    No wonder ISIS is mad....

    english.alarabiya.net/en/business/energy/2014/09/04/Israel-to-supply-Jordan-natural-gas-in-deal-worth-15-billion-.html

    dare to wonder how long this deal and info has been known...

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News