• 1 hour Weatherford Looks To Sell Assets To Ease Some Of $8B Debt
  • 2 hours OPEC Set To Move Fast On Cut Extension Decision
  • 4 hours Nigeria Makes First Step Away From Oil
  • 16 hours Russia Approves Profit-Based Oil Tax For 2019
  • 20 hours French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 22 hours Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 1 day Oil Production Cuts Taking A Toll On Russia’s Economy
  • 1 day Aramco In Talks With Chinese Petrochemical Producers
  • 1 day Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 1 day Maduro Names Chavez’ Cousin As Citgo Boss
  • 1 day Bidding Action Heats Up In UK’s Continental Shelf
  • 2 days Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 2 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 2 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 3 days Whitefish Energy Suspends Work In Puerto Rico
  • 3 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 4 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 4 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 4 days ConocoPhillips Sets Price Ceiling For New Projects
  • 7 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 7 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 7 days Venezuela Officially In Default
  • 7 days Iran Prepares To Export LNG To Boost Trade Relations
  • 7 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
Keystone XL Pipeline Gains Approval After A 9-Year Battle

Keystone XL Pipeline Gains Approval After A 9-Year Battle

Nebraskan regulators have approved the…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Baghdad Threatens Legal Action Against KRG Over Authorized Exports

Baghdad

Two weeks after a 700,000-barrel tanker named Neverland reportedly began its journey towards the U.S. East Coast, Baghdad declared its readiness to challenge the legal validity of Kurdish oil exports in American courts, according to a new report by S&P Global Platts.

The ministry will challenge the legality of any shipments originating from semiautonomous Kurdistan, according to an anonymous senior Iraq oil ministry official. Tensions between Erbil and Baghdad have been brewing in recent weeks as the war against the Islamic State (ISIS) winds down and the Kurds prepare for a referendum on independence scheduled for September.

"The Iraqi government prevented three years ago such a cargo to the US by judicial authority in the US," the official said, referring to the Kurdish cargo on the United Kalavryta, which had been destined for Galveston, Texas, back in 2014. "It is a challenge [to us] and we will challenge that."

In the end, the KRG ordered the ship to offload in Israel and withdrew an appeal to Baghdad’s legal challenge in September 2015, just as ISIS became the main issue on the minds of national leaders.

Neverland’s final destination has not been confirmed, because the ship turned off its transponder after crossing the Strait of Gibraltar.

Related: The Downturn Is Over, But U.S. Oil Companies Face A Huge Problem

The bane of the KRG’s existence is its relationship with the Iraqi federal government. Erbil has argued for years that it remains under compensated for its fossil fuel assets. Baghdad maintains that oil exports from the Kirkuk field must be approved by the Iraqi oil ministry.

Kurdish oil is likely replacing the export reduction pedaled by Saudi Arabia earlier this month to force American refineries to draw from domestic inventories. Baghdad was quick to offer its crude to U.S. importers looking for a substitute to Saudi supplies in a bearish market. Erbil is cashing in on the same opportunity.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Altani on June 27 2017 said:
    I always wondered how countries can divide heir resources after they break up.Who gets the oil and who gets the water(more important than oil)? Who gets the arable lands as nobody is going to want the dry areas with dust storms.I think water is going to be a big issue in near future, as countries can cut water from flowing to other areas and many rivers in the Middle East are drying up! I see more wars in the future. Middle Eastern people have to stop multiplying like rabbits if they want to save their countries!

Leave a comment

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