Kur­dis­tan oil ex­ports ramp­ing up, says MNR

The Kurdish Globe - - FRONT PAGE -

The Kur­dis­tan Re­gional Gov­ern­ment (KRG) plans to in­crease oil ex­ports through the Kur­dis­tan crude oil pipe­line to Turkey to 400,000 b/d by the end of the year and 500,000 b/d by the end of the first quar­ter in 2015, re­ports the Iraqi re­gion’s Min­istry of Nat­u­ral Re­sources (MNR).

Flow rates through the Kur­dis­tan pipe­line to Turkey have in­creased to 300,000 b/d in the first week of Novem­ber from 185,000 b/d in Au­gust.

KRG says it re­mains on track to meet its pro­duc­tion tar­get of 1 mil­lion b/d by 2015 or early 2016.

Since Jan­uary, 34.5 mil­lion bbl of oil have been ex­ported from Kur­dis­tan, of which 21.5 mil­lion bbl were sold through the Cey­han pipe­line. The bal­ance was trucked to Mersin, Turkey.

The ex­ported oil’s value to­tals $2.87 bil­lion, of which $2.1 bil­lion was re­ceived in cash and $775 mil­lion in-kind for 710,000 tonnes of prod­ucts con­sist­ing of kerosene, ben­zene, and diesel.

“All pro­ceeds from the sale of oil are treated as part of the KRG’s Con­sti­tu­tional en­ti­tle­ment to 17% of Iraq’s rev­enues and to 17% of Iraq’s re­fin­ing vol­umes for do­mes­tic con­sump­tion,” the MNR said in a state­ment.

“The rev­enue ac­counts for only a frac­tion of the KRG’s an­nual en­ti­tle­ment from Iraq’s 2014 bud­get, sus­pended by the fed­eral gov­ern­ment since Jan­uary.”

Some $400 mil­lion from the cash pay­ments has been used to pay both truck­ing costs and as part of pay­ment to the oil pro­duc­ers.

The net cash re­ceived by KRG dur­ing this pe­riod to­tals $1.7 bil­lion. The KRG has also re­ceived an ad­di­tional $500 mil­lion in pre­pay­ment for com­mit­ting pur­chasers of crude against fu­ture de­liv­er­ies of oil trans­ported to Cey­han.

KRG cred­its record lev­els of do­mes­tic pro­duc­tion to in­ter­na­tional and do­mes­tic oil com­pa­nies, and says it plans to an ini­tial pay­ment of $75 mil­lion on ac­count to pro­duc­ers for ex­ports, with fur­ther reg­u­lar pay­ments to follow.

Fur­ther pro­duc­tion in­creases will re­sult in those com­pa­nies re­ceiv­ing their full con­trac­tual en­ti­tle­ments.

“The KRG rec­og­nizes that, for the con­tin­u­ing growth of the Kur­dis­tan oil in­dus­try, it is nec­es­sary that con­trac­tors re­ceive pay­ments in line with their con­trac­tual en­ti­tle­ments,” the state­ment said.

Work­ers at Tawke oil field in Iraqi Kur­dis­tan.

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