Tanker with piped Iraqi Kurdish oil U-turns away from U.S.

[dontlop]

Tanker with piped Iraqi Kurdish oil U-turns away from U.S.

By Julia Payne

LONDON | Fri May 30, 2014 1:40pm EDT

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By Julia Payne

LONDON (Reuters) - A crude oil tanker at the center of a dispute between Iraqi Kurdistan and Baghdad has reversed course from its route towards the United States, ship-tracking data showed on Friday, indicating that the shipper may not have a buyer.

The United Leadership oil tanker has become a symbol of a wider conflict between Baghdad and Iraqi Kurdistan over oil sales from the autonomous northern enclave, as it contains the first crude to come out of the region's newly built pipeline into Turkey.

Since loading at the Turkish port of Ceyhan last week, the United Leadership set course for the U.S. Gulf Coast, according to ship-tracking and market sources.

The U.S. State Department said that it did not condone oil sales bypassing Baghdad, and that any buyers could risk a legal suit with the central government.

"We do not support the export or sale of oil absent the appropriate approval of the federal Iraqi government," a U.S. State Department official said.

Despite its position, the U.S. has already imported small quantities of Kurdish oil, though not from the pipeline.

The Kurdish government insisted the oil is going to Europe, when asked about its U.S. destination and that it would be the "first of many such sales".

"One million barrels was sold by auction toboth Germany and Italy. No shipment was sent to the United States," Moyad Talab, a spokesman for the Kurdistan Alliance to the central government, told Reuters.

HOMELESS

But for the moment, the oil appears to be homeless.

The tanker reversed course south of Portugal with a new destination, Gibraltar for orders, Reuters AIS Live ship tracking showed, suggesting that the lifter of the oil has still not found a place to put it.

Until last week, Kurdish oil exports were constrained to a small volume shipped by truck to two Turkish ports on the Mediterranean. Iraq's state marketer made threats of legal action but did not follow through.

But the start of exports out of the Kurdistan's pipeline means much more significant revenues for the region. Iraq swiftly announced that it filed an arbitration case against Turkey with the International Chamber of Commerce.

It also asked its customers to confirm they would never buy exported Kurdish oil, which they have done, an industry source with knowledge of the matter said.

In an effort to lock down the whole process of loading a tanker, Iraq's state marketer SOMO told inspections company, Netherlands-based Saybolt, to cease analyzing Kurdish crude, industry sources with direct knowledge of the matter said.

Saybolt management could not immediately be reached for comment.

Iraq and Kurdistan were trying to reach a political agreement over the oil sales, but five months after the pipeline started up there had still been no final decision, prompting the Kurdish Regional Government to go it alone.

"There is no going back," KRG's Prime Minister Nechirvan Barzani said this week in parliament. "If we cannot reach a shared understanding, we have other options and we cannot wait forever. Why did we begin selling oil? In order to make Baghdad realize that we can do it."

(Additional reporting by Isabel Coles in Arbil, Ned Parker in Baghdad and Timothy Gardner in Washington, Editing by Susan Thomas)

http://mobile.reuters.com/article/idUSKBN0EA1VT20140530?irpc=932

[dontlop]

Baghdad is waiting to see who buys it

Lol

Then they will send them the bill

They will say the already paid for it

Baghdad will say we told the world the Kurds are smuggling out oil

And they will need to make payment to the iraqi oil ministry

Or be sued

But the Kurds can't give back the money because they already used it to pay contractors

This is going to be fun to watch them being hauled off to prison for stealng after they were warned that there would be charges filed if they stole the oil and they did it any way

It's going to take time for this to play out

I want to see who's port they end up in

Its funny how due process works and it does take time

Heck that ship may end up back in turkey

Then what

Pump it backwards to Kurdistan ?

The USA was in Iraq when the constitution was written up

They know what's going on

[Laid Back]

HCL and problem solve.!

Give the Kurds 17%

[calkid11]

Thank you

[Hotcurl]

Sorry, I'm not buying the creditability of this story. The Crude is paid for and has an unloading terminal in place before the tanker leaves Ceyhan.

The Kurds have stated over and over again, they are willing to pay the appropriate percentages to all involved.

[dontlop]

I don't think that matters what the Kurds think they can do

I think the federal govt of Iraq trumps the Kurds

If the Kurds continue

Any hopes of a currency revaluation will be destroyed

The IMF is monitoring Iraq oil exports and called for all oil precedes to be in one account

They never said the Kurds can do as they please and give the federal govt their share

The Kurds are to receive their share in the budget

The metering of oil started a couple years back

The oil ministry is in control of all oil exports from Iraq

And Kurdistan province in Iraq is Iraq

5% of that is to go to Kuwait

Iraq is not out of chapter 7 completely yet

And part of that is because Kuwait isn't paid back yet

The Kurds are screwing everything up

And I think there will be big problems for Kurdish leadership

Maybe even prison along with fines restitution

[dinar_millions]

This is a bogus story..Oil would not be flowing if there was no agreement ..I call b.s.

[yota691]

add this...

Oil: Turkey acted breach of the agreement the two countries

 

 

         

1/6/2014 0:00 

Kurdistan welcomes the invitation by reference to resolve shapes dialogue 
Baghdad morning 
and described the oil ministry for the federal process of Turkey's contribution in facilitating the export of Kurdistan oil through its territory as a violation of the agreement signed between the two countries, stressing recourse to the court in Paris to sue Ankara about it, while announced the Kurdistan Alliance bloc welcomed the invitation of reference on resolving the shapes under the Constitution. He said ministry spokesman Assem Jihad told a news briefing «that Turkey had violated the agreement signed with Iraq by allowing the other party to store and export oil through the Turkish port of Ceyhan», indicating that «Iraq resorted to the Court (icc) in Paris for fairness as the owner of the right," noting "The agreement stipulates that the pipes and reservoirs export be managed marketing company National Oil (SOMO) exclusively and is the only body authorized by the Government of Iraq to export oil," he said, adding that "Turkey's role is limited only to the process of facilitating export and payment of wages, it is not entitled to explain what in the Iraqi constitution. "It is noteworthy that the Oil Ministry announced on May 23, the last set up a lawsuit against the Ministry of natural resources of the region for its oil exports without the consent of Baghdad, confirmed the start of legal proceedings against Turkey, and the company" Botas "for violating the agreement signed between the two countries General , 2010. response to the call of religious reference .. welcomed the Kurdistan Alliance bloc in the words of its spokesman, pro-Tayeb call saying that «the opinion of the religious authority governance is welcome and interesting for all leadership and the people of Kurdistan and therefore we declare we welcome this invitation and are ready to sit at the table of dialogue», pointing out that »Kurds want to have to reference a bigger role in this dialogue, especially when there are differences between the institutions of the state». 
was representative of the Supreme religious authority, Sheikh Abdul Mahdi al-Karbalai said during his Friday sermon in Karbala on the need to refer to the Constitution in relation to the conflict between the center and the region on oil .

[sandfly]

THANKS