Disputes between Iraq and the KRG have stopped crude oil exports via Ceyhan port. The Iraqi government is ready to resume exports but faces opposition from the KRG over consumption increases. OPEC obligations remain unmet, and speculation about Iraq leaving OPEC has been refuted. Negotiations are expected to take place soon to resolve outstanding issues.
The ongoing disputes between Iraq’s federal government and the Kurdistan Regional Government (KRG) have led to the suspension of crude oil exports via Turkiye’s Ceyhan port. As confirmed by the Iraqi Parliamentary Oil and Gas Committee, the Ministry of Oil has fulfilled all necessary procedures and is prepared to resume exports following amendments to the latest budget law, which established export volumes between 300,000 and 325,000 barrels per day (bpd).
Ali Shaddad, the committee’s spokesperson, criticized the KRG’s request to elevate local oil consumption from 46,000 bpd to 110,000 bpd, labeling it a violation of the agreed-upon budget and a hindrance to exports. He emphasized that the negotiators lack the authority to alter existing legal frameworks.
Consequently, the KRG contends that meeting the agreed export volume is impractical, which further threatens to delay operations. Shaddad urged Prime Minister Mohammed Shia Al-Sudani’s government to enforce the budgetary provisions strictly. The federal government perceives oil export laws as technical and legal in nature, whereas the KRG views them through a political lens.
Iraq is bound by OPEC commitments to export 400,000 bpd from the north; currently, only 300,000 bpd has been shipped, resulting in substantial losses. Additionally, speculation regarding Iraq’s potential exit from OPEC has been dismissed. Shaddad remarked that such claims are erroneous and detrimental, warning that leaving OPEC would significantly weaken Iraq’s oil revenues and global position.
In a bid to resolve the situation, a Kurdish delegation is anticipated to meet with Iraqi oil officials in Baghdad. Meanwhile, financial disputes remain a major obstacle to resuming exports from Kurdistan, as oil companies operating in the region demand advance payments for their services, while Baghdad is reluctant to transfer funds until existing financial disagreements are settled.
In summary, the unresolved conflict between Iraq’s federal government and the KRG continues to disrupt crude oil exports through Ceyhan port. The budgetary inconsistencies and differing approaches to oil law enforcement hinder the resumption of agreed exports, which have serious implications for both parties. A meeting between representatives is expected to potentially address these matters, alongside underlying financial disputes that affect production and transport payments.
Original Source: shafaq.com
