KRG Expects Baghdad Oil Payment Next Week

By John Lee.

Reuters reports that the Kurdistan Regional Government (KRG) expects an initial payment of 1 trillion dinars ($858 million) from Baghdad to clear next week after the two sides settled their dispute over payments to oil producers.

"By 2015, we are looking at 1 million barrels per day. We're on track, regardless of whether exports stop again," Oil Minister Ashti Hawrami (pictured) said on Monday at a conference in Istanbul.

Baghdad and Kurdistan agreed earlier this month to end an oil payment dispute after the latter pledged to continue exports and Baghdad said it would pay foreign companies working there.

Hawrami added that an oil pipeline with a capacity of 1 million bpd, and a gas pipeline whose capacity is yet to be determined, will both be built to Turkey in the first half of 2014.

The KRG plans to eventually supply Turkey with 15 billion cubic metres of gas. Beyond that, "we will be looking at additional gas that can transit via Turkey to Europe, whether by pipeline or an LNG plant at Ceyhan," Hawrami added.

(Source: Reuters, Bloomberg)

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