Iraq-KRG Dispute Disrupts Crude Oil Exports via Ceyhan Port
The dispute between Iraq’s federal government and the KRG is obstructing crude oil exports via Ceyhan port. The Iraqi Ministry of Oil is ready to resume exports following budget law amendments, but KRG’s request to increase local consumption is deemed a violation. Financial disputes further complicate the situation, prompting a meeting between Kurdish and Iraqi officials to seek resolution.
Disagreements between Iraq’s federal government and the Kurdistan Regional Government (KRG) continue to impede crude oil exports through Ceyhan port in Turkiye. According to the Iraqi Parliamentary Oil and Gas Committee, the Ministry of Oil has completed necessary procedures and communicated its readiness to resume exports following amendments to the latest budget law, which stipulates export volumes between 300,000 and 325,000 barrels per day (bpd).
Ali Shaddad, spokesperson for the Committee, criticized the KRG’s proposal to raise local consumption from 46,000 bpd to 110,000 bpd, labeling it a violation of the approved budget and a barrier to resuming shipments. He stressed that negotiators do not possess the authority to modify legal stipulations. Shaddad also mentioned that the KRG’s assertion that fulfilling the agreed export volume is unfeasible could lead to extended delays.
The federal government perceives oil export regulations as legal and technical, whereas the KRG views them through a political lens. Iraq is committed under OPEC to export 400,000 bpd from the northern region, but only 300,000 bpd has been achieved, resulting in significant financial losses.
Furthermore, rumors regarding Iraq’s withdrawal from OPEC have been denied. Shaddad emphasized that such claims are untrue and detrimental, warning that leaving OPEC would diminish Iraq’s oil revenue and international prestige.
A meeting is anticipated soon between a Kurdish delegation and Iraqi oil officials in Baghdad to address these disputes. Recent reports highlighted financial disagreements as major hurdles in resuming Kurdistan’s oil exports, with oil companies demanding advance payments, while Baghdad insists on resolving prior financial issues before disbursing funds.
The ongoing dispute between Iraq’s federal government and the KRG is effectively halting crude oil exports via Ceyhan port, with budgetary disagreements exacerbating tensions. The KRG’s request to significantly increase local oil consumption challenges previously set legal frameworks. Both governments must address these financial disputes to restore normal export operations effectively and to maintain their OPEC obligations. The anticipated meeting between Kurdish representatives and Iraqi officials may lead to potential resolutions to these critical issues affecting oil exports and the overall economy.
Original Source: shafaq.com
