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Iraq plans to start work on the elaboration of a final oil deal with the Kurdistan within weeks
ABU DHABI (Reuters) - Iraqi Oil Minister Adel Abdul-Mahdi said on Monday that the Kurdistan region of Iraq will continue to export crude oil under a tentative agreement with Baghdad until they reached a comprehensive agreement is expected to start work on a final agreement within weeks.
Earlier this month, the Iraqi central government has reached a tentative agreement with the KRG authorities to end the bitter dispute over oil exports and the allocation of the semi-autonomous region in the budget.
Under the agreement will be issued Kurdish fields 250 thousand barrels per day through the Oil Marketing Company (SOMO) of Iraq, while the Iraqi Kirkuk region are exported 300 thousand additional barrels through the pipeline runs through the territory of Kurdistan.
Abdul-Mahdi said in an interview with Reuters on Monday that the initial agreement was concluded on the basis in order to Baghdad to 2015 budget development and expect to reach a final settlement "in the coming weeks."
At the same time, the minister said that the Kurdistan region can continue to export more than the limit of 250 thousand barrels per day for its own account, but the legal action taken against Baghdad, the Kurdish authorities in Erbil because of oil exports will remain in place.
He added that the two sides had agreed to keep the situation as it is at the moment, which means that the Kurdish side produced and exported, and the Iraqi government establish some lawsuits in this regard.
"This is illegal and then things will remain as they are now."
Abdul-Mahdi, and pointed to the existence of an atmosphere of "trust and goodwill" between the two sides are currently adding: "We believe that we can sit together and resolve all outstanding issues," such as balance of payments and claims of the parties.
The oil minister said that Iraq currently produces about 3.2 million barrels per day in the south of the country and is expected to increase production by about 100 thousand or 200 thousand barrels per day next year.
If this increase was achieved total will rise Iraq's production of crude oil - after export agreement with the Kurdistan region - to four million barrels per day in 2015.
However, Abdul-Mahdi said he did not believe that it will pay the Organization of the Petroleum Exporting Countries (OPEC) to exert any pressure in the next year to reduce the production of Iraq excluded from production quotas because of wars and sanctions.
He added that in the past year has been cut supplies to the market by nearly a million barrels per day because of Kirkuk and the Kurdistan Regional Government of Iraq and therefore reduce production so much in favor of OPEC, saying he believed that the organization understands that.
Abdul-Mahdi also said he expects the stability of oil prices above $ 70 a barrel by the middle of next year.
The price of Brent crude oil is currently about $ 62 a barrel, down from about $ 115 in June.
(Preparation Abdel Moneim Dirar Arab Bulletin - Edit Nadia Juweili)
Iraq plans to start work on the elaboration of a final oil deal with the Kurdistan within weeks
Mon Dec 22, 2014 3:27 pm GMT
2014-11-24T214610Z_1007010001_LYNXNPEAAN
Rania El Gamal
ABU DHABI (Reuters) - Iraqi Oil Minister Adel Abdul-Mahdi said on Monday that the Kurdistan region of Iraq will continue to export crude oil under a tentative agreement with Baghdad until they reached a comprehensive agreement is expected to start work on a final agreement within weeks.
Earlier this month, the Iraqi central government has reached a tentative agreement with the KRG authorities to end the bitter dispute over oil exports and the allocation of the semi-autonomous region in the budget.
Under the agreement will be issued Kurdish fields 250 thousand barrels per day through the Oil Marketing Company (SOMO) of Iraq, while the Iraqi Kirkuk region are exported 300 thousand additional barrels through the pipeline runs through the territory of Kurdistan.
Abdul-Mahdi said in an interview with Reuters on Monday that the initial agreement was concluded on the basis in order to Baghdad to 2015 budget development and expect to reach a final settlement "in the coming weeks."
At the same time, the minister said that the Kurdistan region can continue to export more than the limit of 250 thousand barrels per day for its own account, but the legal action taken against Baghdad, the Kurdish authorities in Erbil because of oil exports will remain in place.
He added that the two sides had agreed to keep the situation as it is at the moment, which means that the Kurdish side produced and exported, and the Iraqi government establish some lawsuits in this regard.
"This is illegal and then things will remain as they are now."
Abdul-Mahdi, and pointed to the existence of an atmosphere of "trust and goodwill" between the two sides are currently adding: "We believe that we can sit together and resolve all outstanding issues," such as balance of payments and claims of the parties.
The oil minister said that Iraq currently produces about 3.2 million barrels per day in the south of the country and is expected to increase production by about 100 thousand or 200 thousand barrels per day next year.
If this increase was achieved total will rise Iraq's production of crude oil - after export agreement with the Kurdistan region - to four million barrels per day in 2015.
However, Abdul-Mahdi said he did not believe that it will pay the Organization of the Petroleum Exporting Countries (OPEC) to exert any pressure in the next year to reduce the production of Iraq excluded from production quotas because of wars and sanctions.
He added that in the past year has been cut supplies to the market by nearly a million barrels per day because of Kirkuk and the Kurdistan Regional Government of Iraq and therefore reduce production so much in favor of OPEC, saying he believed that the organization understands that.
Abdul-Mahdi also said he expects the stability of oil prices above $ 70 a barrel by the middle of next year.
The price of Brent crude oil is currently about $ 62 a barrel, down from about $ 115 in June.
(Preparation Abdel Moneim Dirar Arab Bulletin - Edit Nadia Juweili)
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ABU DHABI (Reuters) - Iraqi Oil Minister Adel Abdul-Mahdi said on Monday that the Kurdistan region of Iraq will continue to export crude oil under a tentative agreement with Baghdad until they reached a comprehensive agreement is expected to start work on a final agreement within weeks.
Earlier this month, the Iraqi central government has reached a tentative agreement with the KRG authorities to end the bitter dispute over oil exports and the allocation of the semi-autonomous region in the budget.
Under the agreement will be issued Kurdish fields 250 thousand barrels per day through the Oil Marketing Company (SOMO) of Iraq, while the Iraqi Kirkuk region are exported 300 thousand additional barrels through the pipeline runs through the territory of Kurdistan.
Abdul-Mahdi said in an interview with Reuters on Monday that the initial agreement was concluded on the basis in order to Baghdad to 2015 budget development and expect to reach a final settlement "in the coming weeks."
At the same time, the minister said that the Kurdistan region can continue to export more than the limit of 250 thousand barrels per day for its own account, but the legal action taken against Baghdad, the Kurdish authorities in Erbil because of oil exports will remain in place.
He added that the two sides had agreed to keep the situation as it is at the moment, which means that the Kurdish side produced and exported, and the Iraqi government establish some lawsuits in this regard.
"This is illegal and then things will remain as they are now."
Abdul-Mahdi, and pointed to the existence of an atmosphere of "trust and goodwill" between the two sides are currently adding: "We believe that we can sit together and resolve all outstanding issues," such as balance of payments and claims of the parties.
The oil minister said that Iraq currently produces about 3.2 million barrels per day in the south of the country and is expected to increase production by about 100 thousand or 200 thousand barrels per day next year.
If this increase was achieved total will rise Iraq's production of crude oil - after export agreement with the Kurdistan region - to four million barrels per day in 2015.
However, Abdul-Mahdi said he did not believe that it will pay the Organization of the Petroleum Exporting Countries (OPEC) to exert any pressure in the next year to reduce the production of Iraq excluded from production quotas because of wars and sanctions.
He added that in the past year has been cut supplies to the market by nearly a million barrels per day because of Kirkuk and the Kurdistan Regional Government of Iraq and therefore reduce production so much in favor of OPEC, saying he believed that the organization understands that.
Abdul-Mahdi also said he expects the stability of oil prices above $ 70 a barrel by the middle of next year.
The price of Brent crude oil is currently about $ 62 a barrel, down from about $ 115 in June.
(Preparation Abdel Moneim Dirar Arab Bulletin - Edit Nadia Juweili)
Iraq plans to start work on the elaboration of a final oil deal with the Kurdistan within weeks
Mon Dec 22, 2014 3:27 pm GMT
2014-11-24T214610Z_1007010001_LYNXNPEAAN
Rania El Gamal
ABU DHABI (Reuters) - Iraqi Oil Minister Adel Abdul-Mahdi said on Monday that the Kurdistan region of Iraq will continue to export crude oil under a tentative agreement with Baghdad until they reached a comprehensive agreement is expected to start work on a final agreement within weeks.
Earlier this month, the Iraqi central government has reached a tentative agreement with the KRG authorities to end the bitter dispute over oil exports and the allocation of the semi-autonomous region in the budget.
Under the agreement will be issued Kurdish fields 250 thousand barrels per day through the Oil Marketing Company (SOMO) of Iraq, while the Iraqi Kirkuk region are exported 300 thousand additional barrels through the pipeline runs through the territory of Kurdistan.
Abdul-Mahdi said in an interview with Reuters on Monday that the initial agreement was concluded on the basis in order to Baghdad to 2015 budget development and expect to reach a final settlement "in the coming weeks."
At the same time, the minister said that the Kurdistan region can continue to export more than the limit of 250 thousand barrels per day for its own account, but the legal action taken against Baghdad, the Kurdish authorities in Erbil because of oil exports will remain in place.
He added that the two sides had agreed to keep the situation as it is at the moment, which means that the Kurdish side produced and exported, and the Iraqi government establish some lawsuits in this regard.
"This is illegal and then things will remain as they are now."
Abdul-Mahdi, and pointed to the existence of an atmosphere of "trust and goodwill" between the two sides are currently adding: "We believe that we can sit together and resolve all outstanding issues," such as balance of payments and claims of the parties.
The oil minister said that Iraq currently produces about 3.2 million barrels per day in the south of the country and is expected to increase production by about 100 thousand or 200 thousand barrels per day next year.
If this increase was achieved total will rise Iraq's production of crude oil - after export agreement with the Kurdistan region - to four million barrels per day in 2015.
However, Abdul-Mahdi said he did not believe that it will pay the Organization of the Petroleum Exporting Countries (OPEC) to exert any pressure in the next year to reduce the production of Iraq excluded from production quotas because of wars and sanctions.
He added that in the past year has been cut supplies to the market by nearly a million barrels per day because of Kirkuk and the Kurdistan Regional Government of Iraq and therefore reduce production so much in favor of OPEC, saying he believed that the organization understands that.
Abdul-Mahdi also said he expects the stability of oil prices above $ 70 a barrel by the middle of next year.
The price of Brent crude oil is currently about $ 62 a barrel, down from about $ 115 in June.
(Preparation Abdel Moneim Dirar Arab Bulletin - Edit Nadia Juweili)
[You must be registered and logged in to see this link.]
