By John Lee.
Reuters has reported an unnamed Iraqi government source describing what is supposedly the real reason for the delay in exporting 100,000 bpd from the Kurdish Regional Government to Turkey.
As part of an interim deal , this oil was intended to be exported through the Iraqi state pipeline network.
The oil represents a quarter of what the KRG is supposed to export via the State Oil Marketing Company (SOMO) according to Baghdad. Last week, Kurdish PM Nechirvan Barzani (pictured) offered to export 100,000 bpd via SOMO as a gesture of “good will.”
Baghdad then informed the KRG that it was not able to receive the oil due to a severely damaged part of the pipeline, but sources have noted the oil could have been re-routed.
Instead, an anonymous government of Iraq source told Reuters that the real reason Baghdad would not receive the oil was that it had simply rejected Barzani’s offer.
A source remarked,
“We did not even sit to discuss their proposal. Why should we accept for the region to export 100,000 bpd when the federal budget says they should pump 400,000?”
If this is Baghdad’s official position, then difficult negotiations look set to remain difficult.