ERBIL, Kurdistan Region (Kurdistan24) – The Iraqi Oil Ministry on Friday denied a new oil agreement between Baghdad and the Kurdistan Regional Government (KRG).
In a statement by the Ministry of Oil, the department dismissed any new agreement signed between Erbil and Baghdad.
“The previous oil agreement [between the KRG and the Iraqi government] is still in effect,” the statement read.
On Wednesday, Hero Ibrahim Ahmed, a member of the Patriotic Union of Kurdistan (PUK) Political Bureau, and wife of former Iraqi President Jalal Talabani asked Iraqi PM Haider al-Abadi to stop the exportation of Kirkuk oil via Kurdistan pipelines.
Ahmed sent an official letter to Abadi to “explain the position of the PUK” on the Erbil-Baghdad deal to export Kirkuk oil jointly.
The deal is split evenly where the KRG exports 50 percent and Baghdad exports 50 percent via the Kurdistan Region pipeline to Turkey’s Ceyhan port.
“The ministry tried to restore control over the administration of all other oil fields in Kirkuk which was under the charge of the government-owned North Oil Company (NOC) before IS entered Iraq,” the Ministry added.
The report mentioned the oil exports from Kirkuk oil fields were halted due to attacks on the pipeline in Turkey.
“With the continuous halt of the oil exports, the NOC was forced to reinject the Kirkuk oil to the fields,” the statement continued.
The Ministry added the reinjection of oil has been costly for the government as the company was covering the operational expenditure.
“The restoration of the oil exports to Ceyhan port will provide more revenues for the government, Kirkuk’s petrodollar, and the company’s operational expense,” the statement concluded.
On Aug. 29, the KRG and the Iraqi government agreed to jointly export Kirkuk oil via the Kurdistan Region pipelines to Turkey with both sides allocating Kirkuk’s financial dues.
Editing by Karzan Sulaivany