Kurdistan Region of Iraq loses over USD15B due to oil exports suspension
Date
11/3/2024 3:30:24 AM
(MENAFN) The Kurdistan Region of Iraq has suffered significant economic damage, estimated at over USD15 billion, due to the suspension of its oil exports, as reported by Alhurra. These exports were halted on March 24, 2023, following a decision by the International Chamber of Commerce's arbitration panel in Paris, which responded to Iraq’s earlier complaint against Turkey. The exports, which previously flowed through the Iraq-Turkey pipeline from Kirkuk to Turkey’s Ceyhan port, remain suspended without any clear timeline for resumption.
Before the halt, the Kurdistan Region exported approximately 450,000 barrels per day, a modest 0.5 percent of the global oil supply. Despite ongoing negotiations among Baghdad’s federal government, the Kurdistan Regional Government (KRG), and oil companies, exports have yet to resume. Recently, Kurdistan Region President Nechirvan Barzani stated that Iraq has lost USD15 billion due to this prolonged suspension and urged Baghdad to adopt an economic rather than political approach to regional oil issues. He noted that Turkey is open to resuming the oil flow.
In April 2023, an agreement was reached between the Iraqi federal government and the KRG. It allowed the KRG to export 400,000 barrels per day via Iraq's National Oil Company (SOMO), appointed a regional representative as Deputy Chairman of SOMO, and mandated a bank account for oil revenue overseen by Iraq’s Federal Board of Financial Supervision.
Despite this agreement, which was widely seen as a positive step toward resolving the longstanding oil disputes, the Kurdistan Region’s oil exports have yet to restart, highlighting the enduring complexity of the issue.
MENAFN03112024000045015839ID1108845254
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.