Iraq warns KRG over oil exports to Turkey

Iraqi Oil Minister Abdul Kareem Luaibi (Elaibi) has issued a stern warning to the KRG over their attempts to export large quantities of crude oil to Turkey, describing it as «a red line».

«The Kurds are under obligation to ferry all the oil they produce to the national export systems,» said the minister. «But unfortunately this is not the case… Our oil differences are exacerbating».

The Kurds say they can provide up to 200,000 barrels a day but the dispute over how to export the volume and who will collect the royalties have not made it possible to add the volume to Iraq’s surging oil exports.

There are no confirmed reports of the volume of crude oil the Kurds are shipping to Turkey but the minister said the government would not tolerate any action by the Kurds to export their oil to neighboring states.

Ultimatum of Iraqi government to Exxon Mobil spiced things even more up.

Exxon Mobil back in 2011 decided to concentrate its operations at Iraq’s KRG oil fields.

When on November 8, 2012 Exxon Mobil expressed an interest in pulling out of a major oil field development project in the country’s south, the 8.6 billion barrel West Qurna Phase 1 project , there was a common belief the deal would be easy to reach.

But on 24 December, 2012 Lukoil, which already runs a project to develop West Qurna-2, said that it lacked the recourses to take on a project like West Qurna-1 for that moment, Exxon Mobil faced a situation close to crucial.

Having tilted towards Iraq’s KRG without selling its share in West Qurna-1, the company can leave the project only with severe losses, which can put a dent on projects efficiency in Iraq’s KRG.