Kurdistan oil exports to hit 800.000 bpd in 2015

18 Dec 2014

(MENAFN) Iraq’s semi-autonomous Kurdistan Regional Government said that it is planning to increase its oil exports in the coming months, with the Kurd’s pipeline to Turkey possibly carrying 800.000 barrel per day (bpd) next year, including 550.000 bpd which will be marketed by Baghdad under the deal the two sides reached this month, Gulf Times reported.

The KRG Natural Resources Ministry said that the increase in exports from the north of the country, which are currently about half that amount, will help the region to move closer to its plan to achieve economic self-sufficiency, with plans to begin to raise its production by the end of the first quarter of next year to reach 500.000 bpd from the current 400.000 bpd while giving 250.000 bpd to the federal State Oil Marketing Organization (SOMO) under the terms of a draft 2015 federal budget.

The two governments of Iraq and Kurdistan, which are yet to reach a final agreement on Iraqi Kurdistan’s right to export oil independently, have signed an initial agreement which restored KRG’s budget allocation after Iraq withheld it due to the region’s decision to export oil unilaterally, with KRG stating that it continue to sell a portion of its crude while giving some of its oil to Baghdad according to the new agreement.

“I am hopeful for the first time that the long-running dispute over independent Kurdish oil sales could be resolved due to a big change in attitude under the new Iraqi Prime Minister, Haider al-Abadi, who took office in September” The KRG will play its full role in helping Iraq to meet its energy export targets, in 2015,” KRG Natural Resources Minister said.