Iraq Resumed Oil Transmission Via Kurdish Pipeline

Iraq Resumed Oil Transmission Via Kurdish Pipeline

Iraq has resumed pumping oil from fields operated by state-run North Oil Company (NOC) via a Kurdish pipeline to Turkey. About 70,000 bpd of oil are being pumped through the pipeline controlled by the Kurdish Regional Government (KRG),  Reuters reported.

Pumping stopped in March due to a dispute between the government in Baghdad and KRG over the control of Kurdish oil exports, according to Oil Price.

The Iraqi government and KRG have had difficulty agreeing on the terms of oil exportation contracts. The previous deal required KRG to transfer to Iraq’s central state oil marketing company 550,000 bpd , in return for a 17% share in the federal budget. The Kurds stopped oil transfers to the government in 2015. This led Baghdad to hold back 150,000 bpd of crude in Kirkuk from being exported to their final destination, blocking revenues for the cash-strapped KRG.

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