Kurdistan Region of Iraq will export 100,000 bpd through the Iraqi pipeline network from 1 April 2014, sources at the regional Prime Minister’s office said
The initiative reportedly marks a breakthrough in months of negotiations to resolve a dispute between Kurdistan Region of Iraq and the Iraqi central government over exports of oil from the autonomous region.
Crude from the region used to flow through a Baghdad-controlled pipeline to the Turkish port of Ceyhan, but exports via that channel dried up in late 2012 due to a dispute over payments for oil companies operating in the region, Reuters reported.
Nechirvan Barzani, regional Prime Minister, said, “The negotiations with Baghdad on oil export and budgetary matters are ongoing. These negotiations have not yet resulted in any acceptable agreements.
“As a goodwill gesture the Kurdistan Regional Government (KRG) has offered to make a contribution to Iraqi oil pipeline exports to give the negotiations the maximum chance of success.”
The discussions include proposals for oil revenue to be disbursed to the region automatically, as well as the formation of a new committee to oversee exports, PM added.
Until then, the oil is expected be exported via Iraq’s State Oil Marketing Organisation and the revenues deposited in the Development Fund for Iraq account in New York.
