KRG Offers 100,000 bpd Through SOMO

By John Lee.

Kurdish Regional Government PM Nechirvan Barzani (pictured) has offered to send 100,000 bpd of oil from the Kurdish region through the State Oil Marketing Company, Reuters reports.

The move is designed to partially appease Baghdad in the on going and tortuous dispute over oil revenues and exports to Turkey. Currently over 1 million barrels of oil are in storage at the Turkish port of Ceyhan, exported via the Kirkuk-Ceyhan pipeline which became operational in January.

Many analysts remain skeptical of a breakthrough any time soon, especially in the run up to (and aftermath of) April's general elections. Kurdish  and Iraqi officials have also  acknowledged the dispute has been very difficult to resolve.

A statement from Barzani explained the rationale behind the decision:

"The negotiations with Baghdad on oil export and budgetary matters are ongoing. These negotiations have not yet resulted in any acceptable agreements. As a goodwill gesture the Kurdistan Regional Government (KRG) has offered to make a contribution to Iraqi oil pipeline exports to give the negotiations the maximum chance of success".

(Source: Reuters)



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