• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 3 hours Why Wind is pitiful for most regions on earth
  • 3 hours Is OilPrice a cover for Green Propganda
  • 12 mins During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 25 mins Sources confirm Trump to sign two new Executive orders.
  • 13 hours In a Nutshell...
  • 1 day Joe Biden to black radio host, " If you don't vote for me you ain't black". That's our Democratic Party nominee ?
  • 2 days Happy 4th of July!
  • 2 days Putin Paid Militants to Kill US Troops
  • 2 days Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 3 days Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 3 days Victor Davis Hansen on Biden's mental acuity " . . unfit to serve". With 1 out of 5 Democrats admitting it. How many Dem's believe it but will not admit it?
  • 5 hours Coronavirus hype biggest political hoax in history
  • 2 days Apology Accepted!
Russia Expects OPEC+ To Ease Cuts Next Month

Russia Expects OPEC+ To Ease Cuts Next Month

Russia’s Energy Minister Novak said…

U.S. Shale Scrambles For Credit With Oil At $40

U.S. Shale Scrambles For Credit With Oil At $40

U.S. oil and gas companies…

OPEC+ Is Still Producing Too Much Oil

OPEC+ Is Still Producing Too Much Oil

OPEC made efforts in June…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Iraq Is Finally Ready To Solve Its Biggest Oil Problem

The central Iraqi government said it had reached an agreement “in principle” with the government of semi-autonomous Kurdistan on the terms of sharing the oil production of the northern Iraqi province.

The Associated Press reports that the Kurdish government had agreed to deliver 250,000 bpd of crude oil to Baghdad by the start of 2020 and receive in return a bigger portion of the federal Iraqi budget.

According to Iraqi government officials who spoke to the AP, the oil-sharing deal is part of a broader agreement between Baghdad and Erbil that the two have been discussing for months amid growing protests in some parts of Iraq. Despite the protests, the two sides are making progress, the sources who wished to remain unnamed said. Some topics yet to be agreed on include revenue sharing, military cooperation, and perhaps the hottest issue, territory.

Kurdistan is home to some of the biggest oil fields in Iraq, around the city of Kirkuk. The fields around Kirkuk, as well as the city itself, were until the fall of 2017 under the control of the Kurdish government, although the area was not officially part of the Kurdistan region. However, after the ill-fated independence referendum, which led to a strong reaction from Baghdad, the central Iraqi authorities regained control of the oil fields that account for a sizeable portion of Iraq’s oil total.

Around 300,000 bpd of crude oil previously pumped and exported in the Kirkuk province to the Turkish port of Ceyhan were shut in when the Iraqi federal government moved in October 2017 to take control over the oil fields in Kirkuk from Kurdish forces after the semi-autonomous region held a referendum that Baghdad didn’t recognize.

Bilateral relations remained tense until the elections in Iraq, which brought into office Prime Minister Adel Abdul-Mahdi. The Kurdish government considers Abdul-Mahdi friendlier to their interests than his predecessor.

“The deal was struck because the Kurds see Adel as a partner they can trust,” one of the AP sources said. There may have been a sense of urgency on the part of the Kurds because of this, since the protests, which have so far claimed more than 300 lives, have escalated to calls for the resignation of the Prime Minister.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on November 26 2019 said:
    Iraq’s biggest oil problem is to fulfil its huge oil potential by raising its crude oil production to
    6-7 million barrels a day (mbd) by 2023/2024 and expand oil export infrastructure.

    Iraq’s expansion of its oil production and exports goes hand in hand with the expansion of its pipelines and oil-export terminals on the Gulf. To achieve this goal, Iraq needs a permanent and peaceful political accommodation with the regional government of Iraqi Kurdistan (RGK). The agreement reached in principle between the central Iraqi government and the RGK for sharing the oil production of the northern Iraqi province is a step in the right direction.

    For Iraq, the only available oil-export pipeline that bypasses the Strait of Hormuz is the Iraqi-Turkish pipeline (ITP) from Kirkuk to Ceyhan on the Turkish Mediterranean coast with capacity of 1.6 mbd but it is currently out of action. Therefore, Iraq should move with the utmost urgency to rehabilitate the ITP in agreement with the RGK.

    Iraq should also simultaneously give top priority to extending the Iraq strategic oil pipeline to the Jordanian port of Aqaba on the Red Sea, possibly with similar capacity to the ITP.

    Iraq should also endeavour to expand the export-capacity of its terminals on the gulf from the current 4 mbd to 6 mbd.

    Moreover, Iraq should help rehabilitate the Kirkuk to Banias oil pipeline on Syria’s Mediterranean coast but this has to wait the end of the civil war in Syria.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




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