Iraq, Iran agree to Resolve Dispute on Joint Oil Fields

Iraq and Iran occasionally accuse each other of overstepping when it comes to the shared oil fields. As a result, the formation of a committee to solve the disputes was requested.

The Institute of Development Studies, based in London, indicated in its 2012 report that Iraq lost around $17 billion due to Iranian violations of the shared oil fields, which means around 14% of the state’s yearly revenues. The report noted that Iran extracts around 130,000 barrels a day from four shared fields — Dehloran, Shahr, Paydar Gharb and Aban.

Oil experts at the Iraqi Ministry underlined the importance of the agreement with Iran. Hamza al-Jawahiri, an oil expert, told Al-Monitor, “The activity in these fields must be specified in an agreement to allow for its development from both Iraq and Iran.”

As for building oil wells between Kirkuk and Iran, Madloul said, “Kurdistan would not allow this because the pipeline would have to pass through Sulaimaniyah in the Iraqi Kurdistan region.”

He added, “If Iran and Iraq implement the above idea, the federal government in Baghdad will make do without the pipelines under the Iraqi Kurdistan region’s control, which transfer oil from the north of the country to Jihan Port in Turkey. Then, it is loaded on board ships.

Jawahiri said that a pipeline between Kirkuk and Iran would be highly beneficial because Iraq needs more ways to export oil. Moving Kirkuk’s oil through Iran would give Iraq more flexibility in exporting the oil from northern fields if the Turkish Jihan pipeline is out of order.

He added that if Sulaimaniyah refuses to build the pipeline, the Iraqi government will resort to peaceful ways to convince it, noting that military force can be legally used against Sulaimaniyah if it does not cave in.

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