Kurdistan turns off oil spigot: ‘There have been no payments’ from Baghdad

Special to WorldTribune.com

BAGHDAD — Iraq’s autonomous Kurdistan has suspended crude oil
exports.

The Kurdistan Regional Government said the Iraqi Oil Ministry forced the
suspension by halting revenues to energy contractors in the autonomous
north. KRG said Baghdad withheld payment since May 2011. For its part,
Baghdad has accused KRG of smuggling oil through Iran.

“After consultation with the producing companies, the ministry has
reluctantly decided to halt exports until further notice,” the KRG Natural
Resources Ministry said on April 1.

“There have been no payments for 10
months nor any indication from the federal authorities that payments are
forthcoming.”

Over the last few months, Baghdad, meant to receive 75,000 barrels of
oil per day from KRG, stopped at least one Western major, ExxonMobil, from
investing in Kurdistan. The most active Western contractor in the region was
identified as Norway’s DNO, which has not been paid for months.

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