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Report

Iraq’s Kurdistan Independence Bid, Possibility of Oilfields’ Division

Wednesday 8 June 2016
Iraq’s Kurdistan Independence Bid, Possibility of Oilfields’ Division

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Alwaght- The divergence and separatism of Iraq’s Kurdistan region is now witnessing an upgrade to a new stage which the specific feature is a struggle for practical sharing of the oil resources between Erbil and Baghdad.

Following toppling of the Iraqi dictator Saddam Hussein in 2003, the oil and gas reserves and thus the revenues and budget- majorly oil-based- topped the sticking points between the central Iraqi government and the Kurds in north of the country.

Finally, the independent oil production and exportation of the Kurdish region of Iraq with the help of foreign companies led to the region's building an oil pipeline through the Turkish territories. This meant that now Erbil could sell oil independent of Baghdad’s central government.

The Iraqi government’s political, legal and international moves have so far failed to stop flow of Kurdistan’s oil abroad through Turkey.

Signing a 50-year contract to buy the region's produced oil, Turkey has been a major side and cause of Kurdistan independent oil sales.

On the other side, the US, though repeatedly said that it supported rights of the central government and emphasized the need for Erbil government to respect Baghdad's authority, in practice it did not do anything to stop the Kurds and so has been a beholder of the secession process as it has kept rolling on.

Now the Kurdish region normally exports oil from north through Turkey, and the central government can only sell its oil from south of the country.

Both sides in past few days separately released figures on oil sales from their own oilfields.

 

Kurdistan region oil sales report

According to a report of the Ministry of Natural Resources of Kurdistan region, within four months from January 1 to April 30 this year, the region exported 54,224,104 barrels worth over $1.8 billion. This means that the regional Erbil government sold 450,000 oil barrels per day.

Baghdad oil sales report

The Oil Ministry of Iraq has said that its oil exports only during April this year hit 100,900,000 barrels worth over $3.3 billion, adding that all of the oil was produced in the southern oilfields and exported from southern terminals. The Oil Ministry noted that it failed to export any oil via north, namely from Ceyhan Port in Turkey, because the Kurdistan region is uncommitted to oil contracts signed with the central government.

Iraq’s average oil exports reach to 3,300,000 barrels per day.

The reports suggest that Kurdistan’s independent oil production and exportation in association with Turkey is becoming an established practice for Erbil. This is considered as a great development in the Kurdish bid for separation from Baghdad, and so can be a principal factor pushing the region towards economic independence. To put it another way, it could present a pattern for pursing the official political independence from Iraq. Furthermore, It gives the Kurdish parties the optimism that as so far the regional countries and world community lapsed into silence in dealing with Erbil's independent oil sales, they perhaps do the same job when the Kurdistan region declares independence from Baghdad.

Tags :

Kurdistan Oil Income Baghdad Independence

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