Urgent: Iraq announces an agreement with Kurdistan to resume the export of Kirkuk oil

Twilight News
Friday, 16 November 2018

The Ministry of Oil announced the arrival of the federal government and the Kurdistan Region to an agreement in principle to resume the export of oil from the fields of Kirkuk via the pipeline to the Turkish port of Ceyhan.

The ministry spokesman Assem Jihad said in an interview with the twilight news that the agreement provides for the export of oil from the fields of Kirkuk to the Turkish port of Ceyhan through the pipeline passing from the region, at a rate of 50-100 thousand barrels per day.
He added that it will be exported and marketed this quantity through the Iraqi Oil Marketing Company "Sumo".

Exports from Kirkuk have been expected since October 2017, when the Iraqi government forces seized control of Kirkuk from the Kurdish authorities, in response to the organization of a referendum on the independence of the Kurdistan Region.

Kurds seized control of Kirkuk and its oil fields after the fighters expelled the organization «Da'ash» Iraqi army from the region in 2014, and then expelled Kurdish forces fighters of the organization later.

Iraqi oil fields in the disputed Kirkuk area gained new importance after the United States re-imposed sanctions on Iran. Washington is pressing Baghdad to resume exports, which were suspended last year.

Iraq aims to increase its export capacity to 8.5 million barrels per day in the coming years, from less than 5 million barrels per day now, one million barrels may come from Kirkuk, but the process of appeal complex.

The suspension of exports from Kirkuk delayed the flow of about 300 thousand barrels per day from Iraq towards Turkey and global markets, causing a loss of revenues of about 8 billion dollars since the suspension last year. Most of Iraq's exports come from southern fields, but Kirkuk is one of the largest and oldest oil fields in the Middle East, with recoverable oil estimated at 9 billion barrels.

The United States is also considering Kirkuk as an option to help offset the global oil shortage caused by its sanctions against Iran, which bans the import of Iranian oil. The United States is pressing Baghdad to suspend all shipments of oil from Iran and resume pumping from Kirkuk to Turkey, according to sources in the sector.

He destroyed the pipeline that Baghdad had previously used for export through Turkey, to maintain only one pipeline at work, which was built and operated by the Kurds. The Iraqi government has to use the pipeline or build a new pipeline, and is considering both options.

On paper, Baghdad controls Kirkuk oil flows, but if Iraq decides to use the Kurdish pipeline to export oil, it will need to negotiate.

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