Iraq & Kurdistan sign breakthrough agreement
Posted:01 December 2008
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The Iraqi Oil Ministry announced on November 27 that it had approved the export of Iraqi oil to Turkey from the Tawke oil field in Kurdistan.
The agreement marks a turning point in Baghdad’s relationship with the Kurdistan Regional Government (KRG), which governs the autonomous northern Kurdish region of Iraq.
Previously, the Iraqi central government had refused to recognise the deals the KRG had signed with international oil companies over exploitation of its hydrocarbon resources.
An oil ministry spokesman said “there has been an initial agreement to export Iraq oil from the Tawke oilfield.” Tawke will be connected to Iraq’s main northern export pipeline, which will transport oil to the Turkish port of Ceyhan. The KRG expects 100,000 barrels a day to be exported by the end of this year.
Taq Taq, a second Kurdish field is also to be connected to the pipeline in Spring 09, bringing online a further 150,000 barrels per day.
DNO, the Norwegian oil company looks set to gain, having an interest in the Tawke field. Previously, DNO has been selling oil at domestic market prices only.
The deal gives hope that a hydrocarbon law could be negotiated between the Iraqi central government and the KRG. Up until now, the two authorities have been unable to agree on a protocol that would enable the Iraqi oil industry to be resuscitated with the help of international oil companies.
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