| 2008: Kurds say they ready to export 150,000 barrels of oil a day |
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June 6, 2008 Iraqi Kurds say their investment in developing oil fields in their region has paid off handsomely and technically it currently enables them to export 150,000 barrels a day. But their land-locked region bordered by adversaries makes shipping of crude on their own difficult. Both Turkey and Iran have made it clear they would not let the Kurds to use their territory as a transit route. Syria has adopted a similar attitude. The Kurds have signed numerous oil development deals with foreign firms, sparking anger from the central government in Baghdad. Iraq’s Oil Ministry has gone as far as penalizing the foreign firms with such deals by denying them shipment of Iraqi crude. An oil and gas draft law still awaits passage in the parliament mainly due to differences on the role autonomous regions like the Kurdish enclave are to have in developing and exporting oil. The Kurds now control three provinces – Arbil, Sulaimaniya and Dahouk – and want to add the oil-rich city of Kirkuk to their territory. But recently they have sent conciliatory signals to the central government, saying they would accept a joint administration of the disputed city in which Kurds, Arabs and other minorities will have a say in deciding its future. How much oil the Kurdish region has within its current borders is yet to be known as large areas still remain unexplored. But the Kurds seem upbeat about prospects of striking massive quantities and their experts speak of billions of barrels of reserves. Senior Kurdish officials are in talks with the central government in Baghdad on how to resolve the oil issue. Once resolved, it should be technically possible for Kurds to export their oil since they will be relying on the country’s extensive pipeline network. But the government is adamant that any revenues should go directly to Central Bank coffers. The volume Kurds say they are ready to export is estimated to bring about $18 million a day at current prices. |