Turkey wants to resume oil exports from Kurdistan, Iraq is slowing down.
A dispute between Kurdistan, Turkey and Iraq has blocked the export of crude oil through Turkish pipelines, because the oil, officially Kurdish, was actually to be paid to Iraq.
While Turkey said on Monday that Iraqi oil exports will resume this week by reactivating the blocked pipeline, Iraq says negotiations are still ongoing, an unnamed Iraqi official told Reuters on Tuesday .
“We will soon have further meetings and things will be clearer on how serious it is for Turkey to show some flexibility,” the source said, implying that negotiations were far from complete and that Iraq expected more movements from Turkey before oil flows could resume.
The International Chamber of Commerce (ICC) suspended oil flows from Iraq to Turkey in March, ordering Turkey to pay the Iraqi government $1.5 billion in compensation for what it believed were unauthorized oil exports by the Kurdistan Regional Government (KRG) between 2014 and 2018 via the Iraq-Turkey pipeline and Ceyhan port. But the agreement between Türkiye, Baghdad and the KRG remains incomplete.
The standoff between Iraq's state oil marketing company, the Kurdistan Regional Government, and Turkey has managed to disrupt oil flows through a vital pipeline from Iraqi Kurdistan through Turkey since March 25. Talks between the parties have dragged on for months, with 400,000 barrels of oil a day no longer flowing through the pipeline.
In May, Iraq's oil minister said Baghdad and Erbil would reach an agreement on crude oil exports from the Kurdistan region within "a maximum of two weeks." Instead, even five months proved to be an underestimate of the time needed for the parties to reach an agreement. Meanwhile, the KRG has lost billions in oil revenue.
Iraq, OPEC's second-largest producer after Saudi Arabia, currently exports oil only through its southern oil export terminals.
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The article Turkey wants to resume oil exports from Kurdistan, Iraq slows down. comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-turchia-vuole-riprendere-lexport-di-petrolio-dal-kurdistan-liraq-frena/ on Wed, 04 Oct 2023 06:00:30 +0000.