• 2 hours Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 5 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 6 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 7 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 8 hours Rosneft Signs $400M Deal With Kurdistan
  • 11 hours Kinder Morgan Warns About Trans Mountain Delays
  • 17 hours India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 22 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 1 day Russia, Saudis Team Up To Boost Fracking Tech
  • 1 day Conflicting News Spurs Doubt On Aramco IPO
  • 1 day Exxon Starts Production At New Refinery In Texas
  • 1 day Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 6 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 7 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production

Kurdistan’s Finances Hurting over Oil Row with Baghdad

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



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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