Iraq plans to start work on the elaboration of a final oil deal with the Kurdistan within weeks (HCL)

Iraq plans to start work on the elaboration of a final oil deal with the Kurdistan within weeks (HCL)


Iraq plans to start work on the elaboration of a final oil deal with the Kurdistan within weeks - HCLTwilight News / said Iraqi Oil Minister Adel Abdul-Mahdi on Monday that the Kurdistan Region of Iraq will continue to export crude oil under a tentative agreement with Baghdad until they reached a comprehensive agreement is expected to start work on a final agreement within weeks.

Earlier this month, the Iraqi federal government has reached a tentative agreement with the Kurdistan Region to end the bitter dispute over oil exports and regional allocation in the budget.

Under the agreement, Kurdistan will be issued 250 thousand barrels per day through the Oil Marketing Company (SOMO) of Iraq is exported, while an additional 300 thousand barrels of Iraqi Kirkuk region through a pipeline running through the territory of Kurdistan.

Abdul-Mahdi said in an interview with Reuters, seen by the “Twilight News” that the initial agreement was concluded on the basis in order to Baghdad to 2015 budget development and expect to reach a final settlement “in the coming weeks.”

He added that the Kurdistan Region can continue to export more than the limit of 250 thousand barrels per day for its own account, but the legal action taken against Baghdad, Kurdish authorities in Erbil because of oil exports will remain in place.

He pointed out that the two sides agreed on the survival of the situation as it stands at the moment, which means that the Kurdish side produced and exported, and the Iraqi government establish some lawsuits in this regard.

“This is illegal and then things will remain as they are now.”

Abdul-Mahdi, and pointed to the existence of an atmosphere of “trust and goodwill” between the two sides now, he said, adding, “We believe that we can sit together and resolve all outstanding issues,” such as balance of payments and claims of the parties.

The oil minister said that Iraq currently produces about 3.2 million barrels per day in the south of the country and is expected to increase production by about 100 thousand or 200 thousand barrels per day next year.

If this increase was achieved total will rise Iraq’s production of crude oil – after export agreement with the Kurdistan Region – to four million barrels per day in 2015.

However, Abdul-Mahdi said he did not believe that it will pay the Organization of the Petroleum Exporting Countries (OPEC) to exert any pressure in the next year to reduce the production of Iraq excluded from production quotas because of wars and sanctions.

He added that in the past year has been cut supplies to the market by nearly a million barrels per day because of Kirkuk and the Kurdistan Regional Government of Iraq and therefore reduce production so much in favor of OPEC, saying he believed that the organization understands that.

Abdul-Mahdi also said he expects the stability of oil prices above $ 70 a barrel by the middle of next year.

The price of Brent crude oil is currently about $ 62 a barrel, down from about $ 115 in June.