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Rudaw

Kurdistan

Baghdad lost potential $5bn in Kirkuk oil sales: KRG spokesperson

By Rudaw 13/9/2018
An Iraqi military vehicle is parked at an oil field in Kirkuk on October 16. Photo: AFP
An Iraqi military vehicle is parked at an oil field in Kirkuk on October 16. Photo: AFP
ERBIL, Kurdistan Region – Baghdad lost $5 billion in revenue because it didn’t want to make a deal with Erbil over exporting Kirkuk oil, according to the spokesperson for the Kurdistan Regional Government (KRG). 

The KRG offered Baghdad use of its pipeline to Turkey to sell Kirkuk oil when Prime Minister Nechirvan Barzani sat down with Iraq’s Haider al-Abadi at the World Economic Forum in Davos, Switzerland in January, Safin Dizayee told reporters on Thursday.

Under the agreement, Iraq’s state oil company SOMO could export 250,000 to 300,000 bpd of Kirkuk’s oil through the pipeline to Turkey’s Ceyhan port, paying the KRG $200 - $250 million in export fees that would go into the Kurdistan Region’s private sector, not the government, he explained. 

After the meeting in Davos, the Barzani’s office released a statement saying the two leaders had agreed that Iraq’s Ministry of Oil and the KRG’s Ministry of Natural Resources would meet to talk about restarting exports of oil that had been suspended since Iraq took control of Kirkuk’s oil fields. 

The two sides appeared close to making a deal in the weeks after Davos, but nothing was ultimately concluded. 

The problem lay with Baghdad which never made a final decision, according to Dizayee, who posited the reason was unwillingness to pay money to Erbil. 

“That is, instead of giving $250 million as exportation fees in a year, they lost $5 billion in revenues,” he said. 

This $5 billion in lost revenues could have been spent in Basra, Dizayee pointed out. 

Iraq began exporting some of Kirkuk’s oil to Iran by truck in a scheme that is fraught with problems.  

Baghdad has talked about building its own pipeline to Turkey, but a concrete plan has yet to be revealed. And any pipeline would have to pass through Kurdistan Region territory. 

Iraqi forces took control of Kirkuk and other disputed areas in October – part of Baghdad’s effort to exert federal control over the autonomous region after the independence referendum. 

The Kurdish Peshmerga had secured Kirkuk during the war against ISIS after Iraqi forces retreated ahead of the terror group’s advances. 

ISIS no longer holds any significant territory in Iraq, but it remains a serious security threat. Remnants and sleeper cells carry out hit-and-run attacks. 

The militants are able to operate unchecked in areas south of Kirkuk where the Iraqi army is not present.

“ISIS militants are attacking villages and people in these areas. We hear heartbreaking incidents in these places daily,” said Dizayee, renewing calls for the Peshmerga and Iraqi forces to jointly secure the area with the backing of the international coalition. 

Comments

 
Bishop | 14/9/2018
Another reason why abadi needs to be fired or pressured to step down what a complete idiot put your ego to aside and help the people of Iraq and Kurdistan you fool!! He’s a puppet to the Iranian regime!!
Toro | 14/9/2018
Iraq will not make any deals anymore with those corrupt parties running Erbil . May I remind the Kurds that have a brain ( ofcourse excluding Muraz and co ) that Kirkuk oil was being smuggled outside for 3 years by kar group (kdp company ) and the revenue was placed in foreign bank accounts . These days will NEVER come back . So Muraz please stop dreaming and go back to Syria where you are from .
Bishop | 14/9/2018
“Toro” this is a prime reason we Kurds could never trust you Arabs look at your thought process! You lost 5 billion instead of a small portion from 1 billion! Also Iraqi leaders are cutting Kurdish share and taking it to do what with it? Look at Basra for example had abadi or any other Arab descendent from Iraq even contributed to do anything for the people of Basra not long ago the “barzani charity foundation donated clean water.” All that money they lost could have went to Basra without reaching into reserves to do something for Basra talk about using your “brain” Iraqi are puppets of the Iranian regime! Look at your leaders! What have they done for the people of Iraq ?? They say they will do this and that and then fall from there word! Abadi has failed the people of Iraq as a whole including the Kurds he sold his self to serve the regime of Iran along with many other leaders in Iraq! That’s why the people of Basra burned down the Iranian building! Use your “brain” and wake up to reality, it’s rough for everybody in Iraq including the Kurds when you partner with your neighbors instead of the people with in the country!!
civilized turc | 14/9/2018
that 5 billion is better off in hands of martians than religious mullah cunts to spend on their proxies in iraq. fkk them let the oil stay where it is.
Bass | 14/9/2018
Just a litttle correction . Iraq is exporting 600 tankers a day of oil from Kirkuk .

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