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Iraqi Kurdistan halts oil exports over pay dispute


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BAGHDAD: Iraq's autonomous Kurdistan region halted its oil exports on Sunday, accusing the central government in Baghdad of failing to make payments to companies working there in the latest clash in their long-running dispute over oil rights.

The friction between Iraq's government and Kurdish region, autonomous since 1991 with its own government and armed forces, centers on control of oilfields and revenues in the north, and has already trimmed payments to producers like Norway's DNO.

"After consultation with the producing companies, the ministry has reluctantly decided to halt exports until further notice," Kurdistan's Ministry of Natural Resources said in a statement.

"There have been no payments for 10 months nor any indication from the federal authorities that payments are forthcoming," it said.

Officials from Iraq's oil ministry could not immediately be reached for comment. But Baghdad says it has approved payment of close to $560 million to oil producers in the Kurdish region once it completes final audits.

The KRG said last week it had reduced oil exports to 50,000 barrels per day over the payment dispute. Iraq's government says it receives on average 70,000 to 75,000 bpd from Kurdistan, but says it only received 65,000 bpd since the start of the year.

Tensions between Baghdad and the Kurdish region have risen since October last year when Exxon Mobil announced a deal to explore for oil in Kurdistan. Baghdad dismissed the accord as illegal, and warned the U.S. oil giant could risk its agreements with the central government.

http://www.dailystar.com.lb/Business/Middle-East/2012/Apr-01/168788-iraqi-kurdistan-halts-oil-exports-over-pay-dispute.ashx#axzz1qp2HDwOi

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Kurdistan declares halt oil exports until further notice

On: Sun 01/04/2012 20:16

Baghdad (news) .. announced that the Kurdistan Regional Government, on Sunday, stop all oil exports from the region until further notice, due to lack of commitment to the federal government to pay dues to companies operating in the region.

. A statement by the Ministry of Natural Resources in the Kurdistan Regional Government, has received the Agency (news) a copy of Sunday: After consultations with the companies producing the ministry decided to halt exports until further notice.

The statement added: We hope that this measure temporary, and that the officials know in the federal government to non-payment of dues and failure / they abide by the agreements was not in favor of the Iraqi people, adding that the ministry had not received benefits for companies operating in the region since May 2011.

However, the statement that when resolve this issue in a satisfactory manner, Vstbzl ministry every effort to increase exports to more than 175 thousand barrels per day as provided for in the budget of 2012, noting the statement to that from now on will be shifting production to the domestic market for processing and refining to create an alternative source cash flows of the companies producing. / Finished / t. u /

http://translate.goo...PQ-XARwaNxSEzHw

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On 3/31 there was the federal Gov't declaration that Kurdistan would up production to 100,000 bpd. Today production is halted because the federal gov't didn't pay up in full everything owed the Kurds. Looks like the Kurds are saying pay up or else we are going to become completely independant. The games continue..... :angry:

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We all think that they have to RV when they pay. I wish I could believe that. Surely they will be funded by the budget just like they have been paying for projects. I hope I am wrong and they have to RV. But not without a government. I look forward to the big conference we have been waiting for. Tuesday another prep. What a mess, we only want erbil implemented. Geez, if we could just get that then we would see if any other obstacles are in the way that we don't know about.

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UPDATE 2-Iraqi Kurdistan halts oil exports over pay dispute

Sun Apr 1, 2012 3:15pm EDT

* Baghdad says payments have been approved

* Oil rights at heart of long-running dispute

By Patrick Markey

BAGHDAD, April 1 (Reuters) - Iraq's autonomous Kurdistan region halted its oil exports on Sunday, accusing the central government in Baghdad of failing to make payments to companies working there in the latest clash in their long-running dispute over oil rights.

The disagreement heightens tensions in a broader dispute between Iraqi Arabs and ethnic Kurds over contested land, political autonomy and oil that has become a potential flashpoint for Iraq since the last U.S. troops left in December.

Baghdad says only the central government has the right to export oil, but the Kurdistan Regional Government says that it can control petroleum in its region, a disagreement that is disrupting payments to companies like Norway's DNO.

"After consultation with the producing companies, the ministry has reluctantly decided to halt exports until further notice," Kurdistan's Ministry of Natural Resources said in a statement.

"There have been no payments for 10 months nor any indication from the federal authorities that payments are forthcoming," it said.

Iraq's central government says exploration deals signed with Kurdistan are illegal.

Kurdistan says only two payments total ling $514 million have been received, with the last payment made in May 2011.

Baghdad has made payments to companies in Kurdistan in the past for exploration and extraction costs based on an interim agreement.

Officials from Iraq's oil ministry could not immediately be reached for comment. But Baghdad says it has already approved payment of $560 million to oil producers in the Kurdish region and is awaiting final audits.

The KRG said last week it had reduced oil exports to 50,000 barrels per day over the payment dispute. Iraq's government says it receives on average 70,000 to 75,000 bpd from Kurdistan, but says it only received 65,000 bpd since the start of the year.

Tensions between Baghdad and the Kurdish region have risen since October when Exxon Mobil announced a deal to explore for oil in Kurdistan. Baghdad warned the U.S. oil giant could risk its agreements with the central government.

OIL LAW DISPUTE

Iraqi lawmakers are still haggling over a national oil law that is meant to define who controls oilfields and revenues, creating a more solid legal framework for companies working in the OPEC nation.

But highlighting tensions over future investments, Iraq's central government has banned companies working in Kurdistan from participating in its 4th oil bidding round planned for this year for 12 new exploration blocks.

The dispute over payments also comes as Iraq's power-sharing government among Shi'ite, Sunni and Kurdish political blocs tries to end its worst political crisis since the government was formed just over a year ago.

Shi'ite Prime Minister Nuri al-Maliki in December sought the arrest of one of his Sunni vice presidents and asked lawmakers to sideline another of his Sunni deputies, in measures many Iraqi Sunnis believed aimed to shore up his power at their expense.

The Sunni vice president, Tareq al-Hashemi, fled to Kurdistan where officials are refusing Baghdad's request to hand him over to face terrorism charges, further fueling tensions between the two governments.

As much as a third of the oil extracted in northern Iraq is refined locally for domestic use, partly due to late payments from Baghdad for crude pumped into the major pipeline to Turkey and partly because it reduces the costs of producers.

Iraq has some of the world's largest oil reserves and Baghdad has signed multibillion-dollar contracts with global oil majors. But after Exxon agreed to its deals with Kurdistan, other oil majors, including France's Total, are considering deals with the northern region. http://www.reuters.com/article/2012/04/01/iraq-oil-kurdistan-idUSL6E8F10OA20120401

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lol thats the same logic we used with the summit ..."how are were going to pay for everything with a worthless currency"

If they know its not useless then I can understand. However, other countries have bills to pay................Iraq KNOWS that they need to RV and will do so soon!

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"Sound like RV to me"

Your kidding right. this is trouble......more dilemas and conflict... baghdad isnt paying there share to the oil companies. the kurds are serious about forming there own territory and backing out of this whole erbil.deal. and you say.....it sounds like a rv?????

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this could be good! it could be the push they need to get ebril and HCL done!!!!! they are also stating that when satisfied they will increase output... which means Higher GDP.... which means dinar worth more!

GO RV/RI

Erbil is exactly what would stop all these issues. This has been pushed off and I don't want to go into it but one guy who refuses to be part of a team and wants to be on top is killing all of the progress.

Edited by uncirculd
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Erbil is exactly what would stop all these issues. This has been pushed off and I don't want to go into it but one guy who refuses to be part of a team and wants to be on top is killing all of the progress.

Sounds to me like someone should use a trigger finger alrighty! We need to get rid of Allawi. He has always been more trouble than he was worth. I'm not saying Maliki is wonderful, not by a long shot, but at least he seems to be willing to advance, just not to give up any control. So maybe it's his fault. But Alawi has generally stood at a distance and whined to everyone who would listen and has always tried to stop all progress in Baghdad.

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I read on an Iraqi news website that the Kurds are claiming they have $6.6 billion owed to them. So that $560 million that is apparently there for them isn't going to even come close to paying the Kurds what they think they have coming. I'm not sure what the solution is to this problem but it is a problem.

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FROM THE "IRAQ BUSINESS NEWS" WEB SITE

DNO Updates on Operations in Kurdistan

Posted on 02 April 2012. Tags: DNO, Kurdistan, oil contracts, oil exports, Peshkabir, Tawke

Following Sunday’s statement from the Kurdistan Regional Government stopping oil exports from the region, Norway’s DNO International has issued the following statement:

As of 1 April 2012, the Ministry of Natural Resources of the Kurdistan Regional Government (KRG) has instructed DNO International ASA to halt delivery of that portion of crude oil produced from the Tawke oil field that was destined for the Iraqi national pipeline system for eventual export through Turkey.

All other Tawke crude oil and refined product deliveries and field operations remains unaffected. All exploration and development operations on wells Peshkabir-1, Tawke-14, Tawke-15 and Tawke-1A, continue as before and as per plan.

(Source: DNO)

Posted in Oil & Gas0 Comments

Oil Exports from the Kurdistan Region Halted

Posted on 02 April 2012. Tags: Kurdistan, oil contracts, oil exports

The export of oil from the Kurdistan Region of Iraq has been stopped from today because the federal government in Baghdad has not honoured its payment commitments, Kurdistan’s Ministry of Natural Resources (MNR) said on Sunday.

“After consultation with the producing companies, the Ministry has reluctantly decided to halt exports until further notice. There have been no payments for 10 months, nor any indication from federal authorities that payments are forthcoming,” the MNR said.

It added, “We hope that this is a temporary measure and that those in the federal government responsible for non-payment will quickly realise that their failure to adhere to their agreements is not in the interests of the Iraqi people.” No payment has been received since May 2011.

“Once this unfortunate non-payment situation has been satisfactorily resolved we will do our utmost to increase exports above the target of 175,000 barrels per day included in the 2012 Iraq budget,” the Ministry said. “From now on, production will be diverted to the local market for processing and refining to generate an alternative source of cash flow for the producing companies.”

(Source: KRG)

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Sounds to me like someone should use a trigger finger alrighty! We need to get rid of Allawi. He has always been more trouble than he was worth. I'm not saying Maliki is wonderful, not by a long shot, but at least he seems to be willing to advance, just not to give up any control. So maybe it's his fault. But Alawi has generally stood at a distance and whined to everyone who would listen and has always tried to stop all progress in Baghdad.

I don't understand why you say this. You don't want an RV? If Maliki does not implement Erbil, then you don't have a prayer in getting an RV.

Erbil means seating Allawi! Erbil is the power sharing agreement. Shabibi wants a fully seated power sharing government. So take Allawi out of the picture, take the RV out of it. He is the one helping us. Him and Barzani. Everyone wants them to shut up, and if they do, then you will still not have a government. How hard is that? It's not about a wonderful or bad Maliki, it's about power sharing. maliki has already signed off on and refuses to implement. He loses 1/3 of his power and he just can't seem to want to share the power. If Maliki was so willing to advance like he has been saying for a year and a half now, then he is the one in power to do it. AND NO DO IT! That is what he has chosen to do. Not do it. If I had been allowed to be PM even when I lost the election, I sure would want to work with the folks that gave it to me. He had to get a majority in parliament that took 8 months because he did not win the election. With the way the constitution was then was only the ruling party could be the pm. that was from the Saddam era. This always made it so Saddam would be in charge so he could pretend he had democratic elections.

But hey, yeah, get rid of Allawi. Let's just wait until 2014 to have a government. Like I keep saying: "The Kurds are our Friends in this". But heck, I am nobody anyway. I am just a crazy nut who would like to see some real advancement in Iraq for the citizens who have been suffering from all this. I

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