Iraq and Turkey Embargo Export of Kurdish Oil

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20 Sep 2010 (Azzaman) – Iraqi Kurds will not be able to ship oil to the outside world without central government’s approval, according to a new deal the Oil Ministry has signed with Turkey.

Under the agreement Turkey will not allow the flow of Kurdish oil via joint pipelines passing through its territory unless authorized by the Iraqi government.

The joint twin-pipeline originates in the oil center of Kirkuk and terminates at the Turkish terminals on the Mediterranean.

It currently carries nearly 600,000 barrels of Iraqi oil for exports.

It is the only means available for the landlocked Kurdish region to export its oil.

The Kurds say they have the capacity to produce 100,000 barrels a day, but have so far failed to reach an agreement with the central government on how to ship them to the international markets.

Several foreign firms have struck deals with Kurds to develop oil fields in their areas, comprising the provinces of Arbil, Sulaimaniya and Dahouk.

But the central government says the deals are illegal since they were signed without its approval.

The government would also like all proceeds from any Kurdish oil sales end up in its coffers.

By Ali Latif

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