• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 6 mins WTI @ $75.75, headed for $64 - 67
  • 4 hours Trump vs. MbS
  • 5 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 9 hours The Dirt on Clean Electric Cars
  • 15 hours Uber IPO Proposals Value Company at $120 Billion
  • 6 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 22 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 5 hours EU to Splash Billions on Battery Factories
  • 19 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 10 hours Coal remains a major source of power in Europe.
  • 6 hours Poland signs 20-year deal on U.S. LNG supplies
  • 16 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 18 hours Nopec Sherman act legislation
U.S. Shale’s Glory Days Are Numbered

U.S. Shale’s Glory Days Are Numbered

That decline rates in U.S.…

Kurdistan’s Finances Hurting over Oil Row with Baghdad

The Kurdish economy is facing some of its worst problems in years as Baghdad has halted funding to the regional government due to the ongoing oil feud, according to an article from Reuters. Kurdistan has vowed to export oil on its own terms through a pipeline to Turkey, but the Iraqi central government maintains that Kurdistan is violating the law. Having failed to come to a compromise, Kurdistan has moved forward with its attempts to sell oil outside of Iraqi control. This prompted Baghdad to cut off funds to Kurdistan’s regional government, which is supposed to account for 17% of the national budget.

In January, the central government only gave Kurdistan 566 billion dinars, less than half of what it paid out last year on a monthly basis. Baghdad has insisted that it will only restore funding if Kurdistan brings its oil exports under the aegis of the national government. "The equation is simple: you take 17 percent of the wealth, you hand over the oil you have," Prime Minister Nuri al-Maliki told France-24 television last week, according to Reuters. But Kurdistan has already sent one million barrels of oil to Turkey. The oil remains in storage – Turkey is waiting for the two parties to resolve their political conflict before it lets the oil to be exported.

Related Article: Pipeline to Turkey Intensifies Dispute Over Iraqi Oil

The 2014 budget calls for Kurdistan to export 400,000 barrels of oil per day through Iraq’s state-owned oil company. If Kurdistan falls short of that quota, revenues from the central government will be deducted accordingly. However, it must be done under the control of the central government. “The Kurdish people did not make all these sacrifices in order to be subjected to oppression and despotic rule once again,” said Kurdish President Masoud Barzani, alluding to oppression of Kurdistan by Saddam Hussein.

The two sides will likely maintain their hardened positions over the next few weeks as Iraq is in the midst of election season and neither side wants to give any ground.

By Charles Kennedy of Oilprice.com


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

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