KRG’S OIL TRANSFER VIA TURKEY UNDER REVIEW
The government is considering the decision it will take on whether to continue the Kurdish Regional Government’s (KRG) oil transfer through Turkey, Turkey’s Energy and Natural Resources Ministry Undersecretary Fatih Donmez said on Oct. 10.
Speaking at the 8th Turkey Energy Summit, Donmez said although no decision has yet been taken on the KRG’s oil exports following the illegal independence referendum on Sept. 25, the issue is currently being examined. “However, we will decide on our stance based on instructions from the [Turkish] government. As of today, there is no decision yet, although this does not mean that there will not be one,’ he asserted.
The regional government, led by President Mesut Barzani, has enjoyed close ties with Ankara and had used a pipeline stretching from Northern Iraq to the Turkish Mediterranean port of Ceyhan to export oil, a mainstay of the KRG economy. However, the independence referendum – held in KRG-controlled areas across Northern Iraq, including those disputed with the central government in Baghdad – has threatened this relationship.
The KRG’s net income from exports through the Ceyhan port amounted to almost $416 million in October 2016, according to the KRG’s Ministry of Natural Resources Monthly Export and Production Report in 2016, the ministry’s latest monthly oil report. The report showed that the KRG exported a total of 19 million barrels of crude oil and an average of nearly 614,000 barrels a day in October 2016 through the Ceyhan port.
Kurds offer talks with
Baghdad over airport, banks ban
Baghdad took the measures in an attempt to isolate the KRG after last month’s referendum. The government in Baghdad, which declared the vote illegal, imposed a ban on direct international flights to the northern region. It also demanded that the KRG hand over control of its border posts, and stopped selling dollars to four Kurdish-owned banks. “To avoid this collective punishment, we invite (Iraqi Prime Minister) Haider al-Abadi, again, that we [are] ready to [enter] any form of dialogue and negotiations in conformity with the Iraqi Constitution,” the KRG said a statement published last week.