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Fate of the tanker carrying Kurdistan oil unresolved after historic deal with Iraq
Oil Tanker United Kalavryta underway in the Gulf of Mexico on July 25, 2014.
HOUSTON,— A day after Iraq struck a historic deal with the Kurdistan Regional Government to share the country’s oil resources, the fate of a tanker off Galveston’s coast remains unclear. Lawyers representing Baghdad and Erbil met for 20 minutes behind closed doors with a U.S. federal judge on Wednesday to discuss the case involving a tanker carrying Kurdish crude that has been trapped in legal limbo since late July. No action was taken. Under the agreement struck Tuesday, the Kurdistan Regional Government will export 550,000 barrels of oil per day from the semi-autonomous region and Kirkuk province, which is under Kurdish control. The crude will be sold through official government channels, according to reports in the Wall Street Journal and New York Times. The agreement, which goes into effect Jan. 1, appears to clear the way for Kurdish oil exports — which could have implications for the tanker United Kalavryta carrying 1 million barrels of crude off Galveston’s coast. But for now, the case remains unresolved. Lawyers for both parties declined to comment. Baghdad filed a lawsuit in U.S. federal court earlier this year, claiming that the United Kalavryta waswww.Ekurd.net carrying cargo smuggled out of the country to a Turkish port that bypasses the state oil company, which claims the right to broker all deals for Iraqi crude. Kurdistan’s attorneys have argued that the case has
no place in U.S. courts because the conflict is rooted in Iraq, while Baghdad’s lawyers argued that the Kurdistan Regional Government refused to appear before the Iraqi Federal Supreme Court to resolve the case at home. The tanker remains anchored about 60 miles southeast of Galveston, according to ship tracking data updated Wednesday afternoon. Iraq’s legal threats and the ensuing media attention have dissuaded U.S. companies from handling the cargo.
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Oil Tanker United Kalavryta underway in the Gulf of Mexico on July 25, 2014.
HOUSTON,— A day after Iraq struck a historic deal with the Kurdistan Regional Government to share the country’s oil resources, the fate of a tanker off Galveston’s coast remains unclear. Lawyers representing Baghdad and Erbil met for 20 minutes behind closed doors with a U.S. federal judge on Wednesday to discuss the case involving a tanker carrying Kurdish crude that has been trapped in legal limbo since late July. No action was taken. Under the agreement struck Tuesday, the Kurdistan Regional Government will export 550,000 barrels of oil per day from the semi-autonomous region and Kirkuk province, which is under Kurdish control. The crude will be sold through official government channels, according to reports in the Wall Street Journal and New York Times. The agreement, which goes into effect Jan. 1, appears to clear the way for Kurdish oil exports — which could have implications for the tanker United Kalavryta carrying 1 million barrels of crude off Galveston’s coast. But for now, the case remains unresolved. Lawyers for both parties declined to comment. Baghdad filed a lawsuit in U.S. federal court earlier this year, claiming that the United Kalavryta waswww.Ekurd.net carrying cargo smuggled out of the country to a Turkish port that bypasses the state oil company, which claims the right to broker all deals for Iraqi crude. Kurdistan’s attorneys have argued that the case has
no place in U.S. courts because the conflict is rooted in Iraq, while Baghdad’s lawyers argued that the Kurdistan Regional Government refused to appear before the Iraqi Federal Supreme Court to resolve the case at home. The tanker remains anchored about 60 miles southeast of Galveston, according to ship tracking data updated Wednesday afternoon. Iraq’s legal threats and the ensuing media attention have dissuaded U.S. companies from handling the cargo.
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