Seaview
12-03-2008, 01:59 PM
An agreement to allow Kurds to export up to 100,000 barrels of oil a day via national pipelines has collapsed, Oil Ministry officials said.
The officials, speaking on condition of anonymity, said differences over collection of royalties and the Kurdish region’s right to strike oil deals on its own led to the collapse of the deal.
Oil Minister Hussain al-Shahristani and Kurdish Region Prime Minister Nejervan Barzani agreed last month on the export of oil produced from fields within the Kurdish enclave.
The Kurds want to have a say in the foreign cash in return of exporting oil produced in their region and also have the sole responsibility in developing oil fields.
Shahristani has turned down both requests, saying the collection of royalties and signing of contracts must the prerogative of the central government.
Disparate Arab political factions, both Shiite and Sunni, are said to have united behind Shahristani.
In a press conference, Barzani lashed out at Shahristani for recent comments that Kurds must rescind the deals they have signed with foreign firms.
Barzani said those deals would not be revoked and that the Kurds were determined to export oil on their own.
It is not clear how the Kurds could do that as countries neighboring their region – Syria, Iran and Turkey – have said they would not let the Kurds do so without central government approval.
The twin-pipeline carrying Iraqi crude to Turkish terminals on the Mediterranean passes through Kurdish territory but the Kurds cannot disrupt Iraqi exports of nearly 400,000 barrels via that pipeline.
Kurds now get 17% of foreign cash Iraq earns on its oil exports.
http://www.azzaman.com/english/index.asp?fname=news\2008-12-03\kurd.htm
The officials, speaking on condition of anonymity, said differences over collection of royalties and the Kurdish region’s right to strike oil deals on its own led to the collapse of the deal.
Oil Minister Hussain al-Shahristani and Kurdish Region Prime Minister Nejervan Barzani agreed last month on the export of oil produced from fields within the Kurdish enclave.
The Kurds want to have a say in the foreign cash in return of exporting oil produced in their region and also have the sole responsibility in developing oil fields.
Shahristani has turned down both requests, saying the collection of royalties and signing of contracts must the prerogative of the central government.
Disparate Arab political factions, both Shiite and Sunni, are said to have united behind Shahristani.
In a press conference, Barzani lashed out at Shahristani for recent comments that Kurds must rescind the deals they have signed with foreign firms.
Barzani said those deals would not be revoked and that the Kurds were determined to export oil on their own.
It is not clear how the Kurds could do that as countries neighboring their region – Syria, Iran and Turkey – have said they would not let the Kurds do so without central government approval.
The twin-pipeline carrying Iraqi crude to Turkish terminals on the Mediterranean passes through Kurdish territory but the Kurds cannot disrupt Iraqi exports of nearly 400,000 barrels via that pipeline.
Kurds now get 17% of foreign cash Iraq earns on its oil exports.
http://www.azzaman.com/english/index.asp?fname=news\2008-12-03\kurd.htm