• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 50 mins One Last Warning For The U.S. Shale Patch
  • 8 hours Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 4 hours Chile Tests Floating Solar Farm
  • 15 hours China's Expansion: Italy Leads Europe Into China’s Embrace
  • 15 hours Poll: Will Renewables Save the World?
  • 15 hours New Rebate For EVs in Canada
  • 6 hours Trump Tariffs On China Working
  • 18 hours The Political Debacle: Brexit delayed
  • 8 hours Trump sells out his base to please Wallstreet and Oil industry
  • 6 hours Biomass, Ethanol No Longer Green
  • 1 day Oil-sands recovery by solvents has started on a trial basis; first loads now shipped.
  • 24 hours Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 13 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 9 hours Read: OPEC THREATENED TO KILL US SHALE
Trade Tensions Are Keeping A Lid On Oil Prices

Trade Tensions Are Keeping A Lid On Oil Prices

Many crude market analysts are…

Iraq And Kurdistan To Collaborate On Oil Production

Oil

Iraqi government-owned North Oil Co. and Kurdish Kar Group are cooperating on pumping the oil from two fields that halted operations following the government military action to take it over from Kurdistan Regional Government (KRG). Kurdistan forces had been there since 2014 when they ousted Islamic State militants.

The Bai Hassan and Avana oil fields near Kirkuk have been shut since October 19th, keeping at least 275,000 bpd offline. The Kirkuk-Ceyhan pipeline, operated by KAR Group, saw flows fall to 196,000 barrels a day last Thursday—down from 225,000 barrels per day the day before. Normal, non-wartime scenarios peg flow at 600,000 barrels per day.

Civilian workers at both fields were reportedly sent home following a build-up of Iraqi military forces around the sites. Oil Ministry engineers worked to replace computers and other critical equipment missing from oil fields.

Over the weekend, Iraqi authorities said they increased oil exports from the southern Basra region by 200,000 barrels per day to make up for a shortfall from the northern Kirkuk fields.

Last Tuesday, Iraq government forces completed an operation to seize control of all oil fields that Iraqi state-held North Oil Company operates in the oil-rich Kirkuk region from Kurdish forces.

The Kurdish forces, the Peshmerga, had previously held the oil fields around Kirkuk, but pulled out as the Iraqi forces advanced to the oil-rich region. The advance of the central Iraqi government forces in Dibis, home to the Bai Hassan and Avana oil fields, is part of an operation that Iraq’s Prime Minister Haider al-Abadi had ordered that sought to take control of Kurdish-held areas outside the autonomous Kurdistan region.  

Related: Kurdistan Proposes Immediate Ceasefire With Iraq

Following the overwhelming support for Kurdish independence in the referendum, the Kurdistan Regional Government (KRG) is seeking dialog to resolve all issues and has not declared independence in any part of Kurdistan. Iraq, for its part, says that the referendum is unconstitutional. On Thursday, Kurdistan authorities offered to freeze the result of September's referendum on independence and begin dialogue with Baghdad.

Kirkuk is the center of the struggle between Baghdad and Erbil as oil revenues are pretty much main income for the Kurds.

By Damir Kaletovic for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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