Despite New Talks, Iraqi Kurdish Oil Not Close To Resuming Exports

Iraqi federal government officials have met with the Kurdistan region’s petroleum association to discuss the resumption of KRG crude flows through the Ceyhan pipeline to Turkey, which has been offline since March, removing some 400,000 bdp from the market. 

According to Reuters, this is the first time Baghdad has met with representatives of the Association of the Petroleum Industry of Kurdistan (APIKUR) on the issue; however, no agreement was reached. 

Technically, Kurdish oil flows to Turkey should be able to resume since Turkey reopened the pipeline earlier in October. Despite this, there has been no forward movement and the real struggle now remains between the Iraqi federal government and the Kurdistan Regional Government (KRG).

Foreign oil companies operating in the KRG are increasingly becoming caught up in the political feud between Baghdad and Erbil. Highlighting the challenges of this struggle for control of Iraqi Kurdistan’s oil, on Monday, the KRG’s Ministry of Natural Resources warned UAE-based Dana gas, which operates in Kurdistan, of making any agreements with the Iraqi federal government to transport gas without its permission. "According to the contract with Dana Gas, the company is not allowed to transport gas from Kurdistan Regional Government (KRG) fields to any other place without the approval of the Kurdistan Regional Government," the ministry said in a statement on Monday, as reported by VOA. The Ministry’s warning came a day after the Iraqi Oil Ministry announced the completion of a new gas pipeline that would run gas from the KRG’s Khor Mor field to Kirkuk, a province disputed by the KRG and Baghdad.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

• Russian ESPO Crude Oil Is Now Trading At A Discount To Brent
• China's Oil Demand Weakens
• France Races To Diversify Its Uranium Supply Away From Russia