Iraq’s semi-autonomous Kurdistan Regional Government (KRG) has begun supplying 50,000-60,000 b/d of crude oil to a local refinery in the region as per the request of Iraq’s federal oil ministry, multiple sources confirm to MEES. The move falls under the mechanism agreed on between the two entities as part of the budget law whereby the KRG hands over crude oil to the federal government in return for its share of budget payments (MEES, 16 June).
With some 400,000 b/d of pipeline exports to the Turkish Mediterranean port of Ceyhan halted since 25 March (MEES, 31 March), cash-strapped Erbil hopes that the volumes sent would help unlock financial payment from Baghdad. The pipeline has now been shut for four months, with IOCs in the region forced to shut in most of their production for lack of an outlet. (CONTINUED - 774 WORDS)
