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#IraqProgress Iraq Able to Keep Oil Exports Above three to four billion bpd Without KRG Oil Exports

Iraq bids to control Kirdistane oil revenue.

 

Here are the facts surrounding the Turkey KRG Baghdad Oil Dispute:  


Despite a closed northern Pipeline route through Turkey, Iraq has been able to maintain exports above 3.4 million bpd since July.


Preliminary data from the Oil Ministry show that Iraq exported 3.438 million barrels of crude per day (bpd) in September, up from 3.423 million bpd in August.


The Kurdistan Regional Government (KRG) began exporting crude from the semi-autonomous northern region independently from Baghdad in 2013.


The oil from KRG exports flows through a pipeline to Fish-Khabur on the northern Iraqi border, where it enters Turkey and is pumped to the Turkish port of Ceyhan.


Iraq's federal government says its state-owned marketed SOMO is the only party authorized to manage crude exports through Ceyhan.


As a result of Turkey's role in facilitating oil exports from Kurdistan without Baghdad's consent, Iraq filed for arbitration with the Paris-based International Chamber of Commerce (ICC) in 2014.


As a result of transporting and storing oil from Kurdistan and loading it on tankers in Ceyhan without Baghdad's approval, Ankara and Turkish state energy company BOTAS violated the 1973 Iraq-Turkey pipeline agreement.


In July, the ICC ruled in Iraq's favor for the right to control loading at Ceyhan and to see what was being loaded after the final hearing in Paris.


According to three sources, Turkey was also asked to pay 50% of the discount on KRG oil.


A counterclaim for Iraq to pay a pipeline throughput fee was also won by Turkey, which claimed the ICC overruled four of Iraq's five demands.


According to a Turkish source familiar with the case, Iraq's initial demand was for $33 billion, so Turkey owes Iraq about $1.5 billion before interest.


2014-2018 is the period covered by the arbitration case.


The second arbitration case could take about two years to complete.


On March 25, Turkey stopped pumping Iraqi oil via the pipeline to Ceyhan at a rate of around 450,000 barrels per day (bpd).


It included 370,000 barrels per day of KRG crude and 75,000 barrels per day of federal crude.


Iraq's SOMO had to instruct Turkey on ship loading or crude would have built up in storage with nowhere to go. Turkey shut down the pipeline because Iraq won the right to control loading at Ceyhan.


A Deloitte report estimates that sales of KRG crude through the pipeline will reach $12.3 billion by 2022, up 62% from 2017 when Deloitte first published data.


In 2015, the KRG's Ministry of Natural Resources reported $5.9 billion in oil revenues.





This post first appeared on Iraqi Dinar US Rates News, please read the originial post: here

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#IraqProgress Iraq Able to Keep Oil Exports Above three to four billion bpd Without KRG Oil Exports

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