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2. Autonomy Curbed? Kurdish Oil Exports Hit Snags from Turkey and Baghdad
- Author:
- Joshua Krasna
- Publication Date:
- 07-2023
- Content Type:
- Commentary and Analysis
- Institution:
- Foreign Policy Research Institute (FPRI)
- Abstract:
- For the past three months, the Kurdish region in northern Iraq and its government, the Kurdish Regional Government (KRG) have been facing one of the most serious challenges in the two decades of its formal existence. The pipeline through which it exports some 400,000 barrels of oil a day (b/d) – 10 percent of the overall Iraqi exports and 0.5 percent of global production – has been closed since March 25, at an estimated cost of close to a billion dollars a month (approximately $30 million daily). The KRG has depended on income from oil exports for some 80 percent of its budget. The stoppage came after a decade-long arbitration between the Government of Iraq (GOI) and Turkey by the Paris-based International Chamber of Commerce was decided in March in Iraq’s favor. Turkey was ordered to cease loading Kurdish oil without GOI supervision, and to pay Baghdad $1.5 billion in owed fees (Baghdad had demanded $30 billion). Baghdad had claimed that use of the pipeline from northern Iraq to the port of Ceyhan in Turkey by the Kurds without GOI consent was in violation of a bilateral agreement between the two countries from 1973, the annex of which states Turkey would only buy oil from Iraq’s state-owned oil marketer.
- Topic:
- Oil, Economy, Exports, and Autonomy
- Political Geography:
- Iraq, Turkey, Middle East, and Kurdistan Region of Iraq (KRI)