Baghdad expects an imminent agreement on Kurdistan export of oil

Kurdistan had ended last year from extending a pipeline to the Turkish port of Ceyhan on the Mediterranean Sea and concluded agreements with Ankara to export its oil directly to the world market.

Baghdad has rejected this endeavor and said that it has the only right in the management of oil wealth in the country, especially from the point of oil export and it will not accept to export oil only through “SOMO” government-owned” company .

Negotiations between the two sides did not result over months to any result .

Iraqi Oil of Minister, Abdul -Karim al-Laeebe said that he expect to reach an agreement within a few days to resolve the dispute over oil exports between the federal government and Kurdistan.

The dispute over the oil export has cast a shadow over the annual budget for Iraq, which has not been acknowledged until now despite the passage of three months of the new financial year .

Kurdish MPs are boycotting the parliament sessions toll inserting the budget in protest against the budget items as they say include sanctions against Kurdistan Region on oil export.

One of the terms of the budget require the region to export 400 thousand barrels for “SOMO” company owned by the federal government but Kurdistan will face a truncated portion of its share of the financial budget .

Kurds reject strongly this item and decided to export 100 thousand barrels as a good gesture via “SOMO " until reaching an agreement with the federal government .

Laeebe added during oil and gas industry conference in Ankara in news mentioned in Reuters , briefed by “Shafaq News " that “ he expects to resume pumping oil through Kirkuk - Ceyhan pipeline within a week after a stopover since early March .

He pointed out that his country wants to increase the flow of oil through Kirkuk – Ceyhan pipeline to more than one million barrels per day, equivalent to twice the current level.

He added by saying that Iraq wants to build a pipeline between the two countries and would discuss these issues with Turkish Energy Minister ,Taner Yildiz on Wednesday .

Kurdistan Region exported oil via Kirkuk - Ceyhan pipeline, but it had stopped pumping in late 2012 to protest what it said that Baghdad does not pay the financial dues owed ​​by foreign companies of extracting oil .