Baghdad Allowed to Sue over KRG Oil Tanker

By John Lee.

A Texas court has ruled that the case of a disputed shipment of crude oil from Iraqi Kurdistan, which has been waiting off the Galveston coast for several months, falls within its jurisdiction.

The court also rejected the Kurdistan Regional Government's claims of sovereign immunity, leaving the way open for Iraq's oil ministry to sue the KRG for possession of the 1-million-barrel cargo.

But the judge added that he would not consider Baghdad's bid to seize the oil unless the cargo is brought into US waters.

While the Kurdish authorities had initially hoped to sell the cargo for about $100 million, the price of oil has fallen by almost half during the time the ship, the United Kalavyrta (pictured), has waited offshore.

(Sources: Bloomberg)