Despite the inability to export and the halt to refining at Beiji, the Avana and Makhmour fields were producing about 110,000 barrels of oil per day and utilising the associated gas to help with the operation of the LPG bottling plant in Kirkuk.
But instead of using the new KRG pipeline infrastructure to export the produced oil, officials at the NOC were ordered by Baghdad to re-inject the oil back into a small, disused field in Kirkuk. This politically motivated decision risked causing great damage to the field in question with a permanent loss of most of the oil that has been re-injected. It has also deprived the people of Iraq of much-needed oil export revenue.
From now on, production at the new fields under KRG control will be used primarily to fill the shortage of refined products in the domestic market. This will ease the burden on ordinary citizens caused by the failure of the federal authorities to protect the country's vital oil infrastructure in the region.
The KRG will also claim its Constitutional share of oil revenues derived from these fields to make up for the huge financial deficit triggered by the illegal withholding of the KRG’s 17 percent share of the federal budget by Baghdad.
The KRG has been and always will be open to cooperation and coordination with Baghdad, according to the rights and responsibilities of the Regions as outlined under the Iraqi Constitution. The KRG still hopes that Baghdad climbs down from its policy of punitive political and economic sanctions against the citizens of Kurdistan.
This morning’s events have shown that the KRG is determined to protect and defend Iraq’s oil infrastructure whenever it is threatened by acts of terrorism or, as in this case, politically motivated sabotage.
(Source: KRG)
Comments are closed.