Kurdistan Oil & Gas Development

[Anthea]

ANKARA, Jan 2 (Reuters) - Crude oil from Iraqi Kurdistan has started flowing via a new pipeline to the Turkish Mediterranean export hub of Ceyhan but will not be shipped to world markets without the consent of Baghdad, Turkish Energy Minister Taner Yildiz said on Thursday.

Yildiz hopes a deal can be reached this month for exports to begin, he told a news conference in Ankara.

Flows through the pipeline would start at 300,000 barrels per day (bpd) and rise to 400,000, he said.

Turkey signed a multi-billion-dollar energy package late last year with Iraqi Kurdistan (KRG) under which the semi-autonomous region plans independent energy exports via Turkey.

Kurdistan could eventually export some 2 million bpd of oil to world markets and at least 10 billion cubic metres per year of gas to Turkey.

Its bid to export oil and gas independently from Baghdad has infuriated officials in the Iraqi capital, which claims sole authority to manage Iraqi oil.

Turkey has been working to get the central government on board before exports start.

"The flow of crude oil from Iraq has begun. It is being stored. It will not be exported without the consent of the Iraqi government," Yildiz told the news conference.

The Turkish-KRG deal has significance for major oil companies as well as for the Kurds and Turkey, which stand to benefit from domestic supply and onward westward export through Ceyhan.

Kurdistan has struck deals with ExxonMobil, Chevron and Total among others as it seeks to develop its energy industry.

Ankara has set up the Turkish Energy Company (TEC), a state-backed entity which has struck partnership deals with Exxon and will be Turkey's counterparty in dealings with Kurdistan.

Yildiz visited Baghdad in December for talks with Iraq's Deputy Prime Minister Hussain al-Shahristani, who has long opposed Turkey's courtship of the Kurdish region.

Baghdad says Kurdish efforts towards oil independence could lead to the break-up of Iraq, but Turkey has repeatedly said it respects Iraq's sensitivities over territorial integrity and that increasing oil revenues will help the whole of the country.

http://www.reuters.com/article/2014/01/ ... M220140102

[Anthea]

Oil pipeline blown, oil flow to Turkey’s Jihan port suspended

Kirkuk (NINA) – Source at North Oil Company (NOC) said that oil flow from Kirkuk oil field to Turkey’s Jihan port has stopped, after 6:00 pm Thursday, Jan. 2, as a result to an act of sabotage at K2 pumping station near Baiji refinery.

The source said that pumping oil has stopped after the pipeline was subjected to act of sabotage with explosives, causing fire to break out; but production continues.

He added that fire fighters rushed to the site to distinguish the fire and repair the pipeline that is used to pumps 325thousand barrels of NOC production of over 650 thousand barrels a day.

In the year 2013, the Iraq-Turkey oil pipeline has experienced more than 50 acts of sabotage. / End

http://www.ninanews.com/english/News_De ... _VQ=GLLDGL

[Anthea]

Crude oil has started flowing from Kurdistan to Turkey, but it’s stuck in the purgatory of Turkey’s Ceyhan export hub and will not be exported any further until Turkey reaches a deal with Iraq’s central authorities in Baghdad.

Turkish energy officials said oil started flowing directly from Kurdistan on Thursday, and that the oil would be kept in storage at the country's Ceyhan export hub and that he hoped that Ankara would reach a deal with Baghdad before the end of January.

Baghdad has threatened in the past to take measures against Turkey’s signing of energy deals unilaterally with Kurdistan, bypassing the Iraqi central authorities, who claim that such deals are illegal and represent Kurdish efforts to move towards independence.

Baghdad has also threatened foreign companies who have signed deals with the Kurdistan Regional Government (KRG) without the central authorities’ permission.

Baghdad cannot stop this momentum, however, and the Turks and the Kurds are keen to let the Iraqi central authorities restore some of its lost dignity over the issue by affording it some sense of control, which is now the only way to resolve the crisis without a conflict.

In November, Turkey signed an energy package with Iraqi Kurdistan (KRG) under which the semi-autonomous region plans independent energy exports via Turkey.

Kurdistan could eventually export some 2 million bpd of oil to world markets and at least 10 billion cubic meters per year of gas to Turkey.

Taner Yildiz, Turkish energy minister told media that Iraqi Kurdistan's resources will help diversify its energy supplies and reduce its $60 billion yearly energy tab, which continues to rise.

Expected to carry around 300,000-400,000 barrels per day (bpd), the pipeline is key to both sides.

Turkey, for its part, needs reliable sources of oil to feed its growing economy and also to diversify its imports away from Iran.

Up until now, Kurdistan has been exporting only 50,000 bpd. An oil pipeline does exist between Kirkuk and the Turkish port of Ceyhan, but it is controlled by Baghdad. Without a pipeline of its own, Kurdish exports have gone to Turkey by truck.

Although the initial export will be small relative to Iraq as a whole and only represents about one-sixth of Iraq’s total export potential, more Kurdish exports may follow and production could be ramped up with new discoveries as exploration continues unabated.

The Turkish-KRG deal has significance for major oil companies as well, which will benefit from domestic supply and export through Ceyhan. Kurdistan has deals with ExxonMobil, Chevron and Total among other smaller operators.

http://oilprice.com/Energy/Crude-Oil/Ku ... urkey.html

[Anthea]

Iraqi Kurdistan's first oil exports via Turkey pipeline seen by end-Jan



The first crude has started to flow through Iraqi Kurdistan's new pipeline across Turkey and the first independent exports are expected to begin at the end of this month, the Kurdistan Regional Government (KRG) said on Wednesday.

The first parcel of 2 million barrels of oil will be sold via a tender, KRG's Ministry of Natural Resources said on the government's web site. It invited bidders for the January tender.

The monthly export parcels will then increase to 4 million barrels and 6 million barrels in February and March respectively, it said. The monthly exports are estimated to reach 10-12 million barrels in December.

Iraqi Kurds and the central government in Baghdad have been at loggerheads over the share of oil revenues. Baghdad, which claims the sole authority to manage Iraqi oil, was infuriated after Arbil signed a package of contracts with Turkey for oil and gas exports as well as for the construction of new pipelines.The Baghdad government says Kurdish efforts towards oil independence could lead to the break-up of Iraq. Turkey's courtship of the Iraqi Kurds has also raised concern in Washington.

TURKISH PROPOSAL

But Turkey has repeatedly said it respects Iraq's sensitivities over territorial integrity and that increasing oil revenues will help the whole of Iraq. Ankara has been working to get Baghdad on board and proposed setting up an escrow account at a Turkish state bank for the oil revenues to be deposited. The Iraqi government has yet to agree on the Turkish proposals.

KRG's new pipeline carries the Iraqi Kurdish oil to Turkey's Mediterranean export hub of Ceyhan. It is initially carrying heavy oil from Tawke fields and links up with the 40-inch-wide existing Kirkuk-Ceyhan pipeline to be exported to world markets.

Crude oil from Taq Taq and other producing fields will soon be added to the export system, resulting in a blended medium crude oil..," the KRG statement said. Prospective buyers will be able to lift crude oil shipments in Ceyhan "under similar arrangements" as those used for Iraq's State Oil Marketing Organisation (SOMO) for oil exports from Kirkuk.

Details of each parcel will be announced by the Ministry of Natural Resources and independent observers as well as representatives from SOMO will be invited to monitor the process, KRG said.

(Reporting by Humeyra Pamuk; Editing by Mike Collett-White and Gareth Jones)
Source: Reuters

[Anthea]

Iraq says Kurdistan oil shipments "illegal", as shares rise for firms working with Kurds


Iraq's Deputy Prime Minister for Energy Hussain al-Shahristani.

LONDON,— The flow of oil through a new pipeline to transport oil from Iraq's Kurdistan region to Turkey boosted shares in companies with fields there on Thursday, on expectations that they will now be able to sell more crude abroad despite Baghdad's strong objections.

The Kurdistan Regional Government (KRG) said on Wednesday that the first crude had started to flow through the new independent pipeline across Turkey. Exports are expected to begin at the end of this month and will ramp up in February and March, it said.

Iraq's central government said on Thursday it still opposed the shipments, which it considers illegal without its blessing: "No approval is given," Iraq's Deputy Prime Minister for Energy Hussain al-Shahristani said in an email to Reuters.

Although the early flows are predicted to be modest, the move has the potential to redraw export routes across the region. Kurdistan's bid to sell oil and gas independently from Baghdad has infuriated officials in the Iraqi capital, which claims sole authority to manage all Iraqi oil.

Shares in London-listed Genel Energy were up 4.54 percent and Norway's DNO was up 2.09 percent on Thursday. Both companies supply oil to the new pipeline from fields in Kurdistan,www.Ekurd.net according to the KRG.

"Overall, (the news is) supportive for Kurdistan-focused Genel and provides confidence that the prospect of pipeline exports are become an increasing reality," Deutsche Bank said in a note.

Other companies that aim to produce oil in Kurdistan but don't yet use the pipeline also saw shares rise modestly, including London-listed Gulf Keystone , which separately announced on Thursday that it had begun exports of Kurdish oil by truck. Its shares were up 0.85 percent. Hungary's MOL and Britain's Petroceltic and Afren also traded higher.

"(Kurdish) Government confirmation of the expected ramp-up in piped exports will be viewed as a positive today," Numis analyst Sanjeev Bahl said, adding that Genel and DNO would be the main beneficiaries.

Iraq's northern Kurdistan region, made up of three mountainous provinces on the Turkish frontier, has blossomed economically under self rule as the only part of the country to escape the violence unleashed after the U.S. invasion that toppled dictator Saddam Hussein in 2003.

Iraq's constitution mandates that all Iraqi oil revenues go through the central government in Baghdad, and the Kurds then receive 17 percent. The windfall has brought prosperity to their small region, although the Kurds frequently complain that they have received less than their full entitlement.

Although most of Iraq's oil is now produced in the south, the northern Kurdish provinces have largely untapped oil fields of their own, and the Kurds also have territorial claims to the oil-producing region of Kirkuk.

Kurds want the right to manage their own oil industry, and say they will channel revenues to the central government for the benefit of all Iraqis. But politicians in Baghdad fear any such move could one day lead the Kurds to seek independence and try to seize control over Kirkuk.

The Kurdish government has invited bids to buy the first shipment of 2 million barrels of oil to be piped to Turkey this month.

It says it will then offer 4 million barrels in February and 6 million in March, rising to 10-12 million barrels by December, an amount that would be equivalent to around 10 percent of Iraq's oil output. That would put the Kurds well on their way to being able to raise as much money on their own as they now get from Baghdad.

Baghdad has pressed large international oil companies not to do business with the Kurds, leaving the field open to smaller firms like Genel, DNO and Gulf Keystone. Shares in those oil companies doing business in the Kurdish region have tended to fluctuate based on political sentiment, rising when it appears that the Kurds are closer to securing the means to export via Turkey.

Analysts at HSBC upgraded Genel to overweight on Thursday, giving it an additional boost. They cut their rating on DNO to underweight however, citing a recent surge in its share price by 160 percent.

Copyright ©, respective author or news agency, Reuters

http://www.ekurd.net/mismas/articles/mi ... te7649.htm

[Anthea]

Operational and Corporate Update

Summary

Gulf Keystone, a leading independent E&P operator in the Kurdistan Region of Iraq, today provides an operational and corporate update.

Significant progress has been made since the Field Development Plan ("FDP") for the Shaikan field was approved in June 2013. In July 2013 the Company commenced commercial production, marking Gulf Keystone's transition to an operator with revenue generation. In December 2013 crude oil exports from the Shaikan field commenced.

Shaikan (75% working interest; Operator)

Shaikan Production Update

Gulf Keystone is pleased to announce the commencement of crude oil exports from the Shaikan field.

In line with the Company's marketing strategy, which is being developed in co-operation with the Ministry of Natural Resources of the Kurdistan Regional Government, the first tendered cargo of between 30,000 tonnes (198,300 barrels) and 33,000 tonnes (215,000 barrels) of Shaikan crude was trucked to Turkey in December and will be loading at the port of Dortyol this month.

A second tender is underway for two further cargoes of similar size of Shaikan crude, which are expected to be loaded later this month and during February. Sales realisations are expected to be in accordance with the terms of the Production Sharing Contract for the Shaikan Block ("Shaikan PSC") and will reflect transportation and quality adjustments.

The first Shaikan production facility ("PF-1") is in operation with two wells currently tied to the facility, namely Shaikan-1 and -3. The flowlines from Shaikan-4 to PF-1 are now complete and the well has been worked over as a Jurassic Sargelu producer prior to being tied to PF-1 in early 2014.

Work at the second Shaikan production facility ("PF-2") is nearing completion with electrical and instrumentation work ongoing. The Shaikan-2, -5, and -10 wells have been completed as Jurassic Sargelu producers and the flowlines from these wells to PF-2 are currently being laid.

Current average oil sales from PF-1 stand at between 9,000 and 10,000 barrels per day of export quality crude. The Company will provide an update on well performance and combined production capacity of PF-1 and PF-2 as the additional four wells become operational.

Shaikan Field Development Plan - Phase 1

During Phase 1 of the Shaikan development, the Company will seek to achieve 100,000 bopd of production. As set out in the FDP, the Company will be undertaking an active development drilling campaign as well as installing additional production facilities.

The Shaikan field is expected to be connected to the main export pipeline from the Kurdistan Region of Iraq to Turkey, which was finalised in late 2013. A review of the FDP will include Phase 2 Cretaceous, Triassic and, potentially, Permian development.

A key element of the FDP is the commencement of a sour gas injection project. Shaikan-8 was completed as the first sour gas reinjection well and bids have been tendered for gas compressing equipment required to increase plant production capacity, which is subject to well performance and emissions constraints, from the near-term target of 40,000 bopd to the Phase 1 target of 100,000 bopd. The sour gas injection project is expected to be finalised in 2015.

Financing decisions in order to fund the Phase 1 activities will be made in conjunction with anticipated steady oil production and sales from PF-1 and PF-2 in 2014.

Exploration & Appraisal

Shaikan (75% working interest; Operator)

Drilling of the Shaikan-7 deep exploration well is continuing in the Jurassic formation, after the top drive of the Weatherford 319 rig had to be replaced. The well is currently drilling 17 ½" hole below 2,300 metres in the Butmah reservoir. Shaikan-7 will drill into the Triassic and is then expected to penetrate the Permian with a potential to add to already discovered resources, and first results are expected in Q2 2014.

Sheikh Adi (80% working interest; Operator)

The first well to appraise the Sheikh Adi discovery spudded in December 2013. Sheikh Adi-3 is being drilled with the Weatherford 842 rig to target the Jurassic and Triassic with an additional aim to test the potential connection between the Sheikh Adi and Shaikan fields. The well is currently operating below 1,000 metres in the Cretaceous.

Akri-Bijeel (20% working interest)

Bijell-1B is a side-track well targeting the Jurassic horizons of the Bijell discovery and currently drilling 8 ½" hole in the Jurassic below 3,820 metres.

Bijell-2 is a deep appraisal well targeting the Triassic horizons of the Bijell discovery and currently drilling and coring in the Sargelu formation below 3,900 metres.

Bijell-4 is an appraisal well targeting the Jurassic horizons of the Bijell discovery and currently in 17 ½" hole in the Upper Fars formation below 1,040 metres.

Finance

The US$50 million tap issue of convertible bonds in November 2013 confirmed investor interest to invest in the Company's evolving story. The Company's increasing production will provide a recurring revenue stream and the Company believes that this will provide an opportunity for Gulf Keystone to access the debt market under more favourable terms in due course. In order to fund the Company's ongoing capital expenditure requirements and meet its obligations under the terms of the Shaikan PSC, the Company is in discussions with a major international bank to assist with the evaluation of the Company's near term debt financing options.

Following the hearing in the English Commercial Court (the "Court") on 13 December 2013 and the resultant Court Order, the Company has now received £17,500,000, which had been paid into Court as security for the costs of the Company, its two subsidiaries and Texas Keystone Inc. (together the "Defendants") by the funders of Excalibur Ventures LCC ("Excalibur"). Texas Keystone Inc. holds a 5% interest in the Shaikan PSC in trust for Gulf Keystone, pending transfer of its interest to the Company.

According to the Judgment handed down on 13 December 2013, the Court ordered that the Defendants should recover their costs of these legal proceedings and that these costs, if not agreed, should be assessed on an indemnity basis, and that Excalibur must pay interest on the Defendants' costs at the rate of 1.5% per annum, from the date of payment of the invoices until 13 December 2013.

On 13 December 2013, the Court further ordered Excalibur to provide an additional security for the costs of the Defendants in the total amount of £5,612,010 by 31 December 2013, failing which the Defendants were given leave to commence proceedings for recovery of such costs and to the extent necessary, to serve proceedings out of the jurisdiction against Excalibur's funders, namely Psari Holdings Limited, Mr Adonis Lemos, BlackRobe Capital Partners LLC, BlackRobe AEO Investors I, LLC, Platinum Partners Value Arbitrage Fund LP, and Hamilton Capital LLC. The Company understands that Excalibur did not pay the additional security into Court and accordingly the Defendants have made an application under Section 51 of the Senior Courts Act 1981 against Excalibur's funders to recover their costs of these legal proceedings.

The Judgment is available to view at http://www.bailii.org/cgi-bin/markup.cg ... od=boolean.

Move to the Main Market

Work is underway on the Company's proposed move from AIM to the Standard Segment of the Official List and we continue to work with Deutsche Bank AG, London Branch, the Company's exclusive corporate advisers in connection with the proposed move. The Company is in the advanced stages of finalising the relevant documents including the Listing Prospectus, the Competent Person's Report ("CPR"), and the required financial reports.

After the successful resolution of the litigation against Excalibur Ventures LLC, as detailed in the Company's announcement of 16 December 2013, the Board's and its corporate advisers' current expectation is for the admission to be achieved as soon as practicable in 2014.

Todd Kozel, Gulf Keystone's Chief Executive Officer commented:

"Significant progress has been made since the Shaikan Field Development Plan was approved in June 2013. We began commercial production 30 days after its approval and now the first cargo of Shaikan crude is being sold to the international market. As we are increasing Shaikan production, we are developing a flexible marketing strategy in co-operation with the Ministry of Natural Resources of the Kurdistan Regional Government to achieve the best price for our crude. Our short-term focus is on the trucking export route via Turkey, while we are working on getting access to the regional pipeline network. Ours is a constant evolution: we are growing as a company and we are proud to operate in the Kurdistan Region of Iraq."

http://ir1.euroinvestor.com/asp/ir/Gulf ... 9&ishtml=1

[Anthea]

Kurdistan Region of Iraq



Gulf Keystone is focused on exploration, appraisal and production in the Kurdistan Region of Iraq where a world-class discovery was first made on the Company’s Shaikan block in 2009. The Company is currently entering a new stage of its development as it matures from a proven oil explorer to a significant producer in the Kurdistan Region of Iraq.
Taking into account current resource estimates for the Shaikan commercial discovery and preliminary resource estimates for the Sheikh Adi, Akri-BIjeel, and Ber Bahr blocks, today Gulf Keystone has a share of gross mean oil-in-place resources of at least 19 billion barrels in one of the last frontier oil provinces in the world.

Link for pictures/diagrams showing locations of Gulf Keystone opperations:

http://www.gulfkeystone.com/operations/ ... on-of-iraq

[Anthea]

Ministry of Natural Resources Announcement on Oil Export Sales



The KRG Ministry of Natural Resources (MNR) gives public notice of the commencement of the sale of its first shipment of crude oil exported via Kurdistan Region’s new pipeline through Turkey to the Port of Ceyhan.

MNR anticipates the sale of the first parcel of two million barrels of exported crude oil to occur at the end of January 2014. Thereafter, monthly parcels will increase to 4 million barrels by the end of February and 6 million by the end of March, then steadily stepping up to 10-12 million barrels for the month of December 2014.

At the beginning of this month, some initial quantities of crude oil produced from the Tawke field began flowing through Kurdistan’s new pipeline system to the Turkish port of Ceyhan, and crude oil from Taq-Taq and other producing fields will soon be added to the export system, resulting in a blended medium crude oil quality of 30 to 32 Degrees API.

Prospective buyers can lift the crude oil shipments in the port of Ceyhan under similar arrangements as those used for SOMO (the State Oil Marketing Organisation) for oil export from Kirkuk.

Details of each parcel will be published by MNR in due course. All tenders will be competitive and based on international pricing. In order to ensure full transparency of the sales and contracting process, independent observers will be invited to each tender, together with representatives of the oil companies that have produced the exported oil.

MNR also invites representatives of SOMO to join the process as observers. At this stage, MNR is inviting reputable and financially capable companies to register with MNR their interest in participating in the January tender or any of the future tenders.

All applicants should in the first instance write to the Ministry of Natural Resources with information about their company profile, track record and financial status via email KOMO@mnr.krg.org.

All submissions should be addressed to:

KOMO - Kurdistan Oil Marketing Organization,
Ministry of Natural Resources,
Council of Ministers, Kurdistan Regional Government,
Erbil, Kurdistan Region, Iraq

Source: KRG.org
PUKmedia

http://www.pukmedia.com/EN/EN_Direje.aspx?Jimare=18020

[Anthea]

Gulf Keystone to continue trucked oil exports from Kurdistan

Gulf Keystone is preparing to sell at least two more shipments from the Shaikan oil field as the Kurdistan Regional Government (KRG) presses ahead with an autonomous oil monetization policy that is likely to deepen its rift with Baghdad.While oil from the KRG's three other exporting fields will be sent in a newly commissioned pipeline to Turkey, Shaikan will sell truckloads via politically connected Turkish trader PowerTrans until its field is connected to the pipeline.


Tankers queue outside Gulf Keystone Petroleum's PF-1 production facility north of Shaikan in Ninewa province

[Anthea]

Oil companies are polluting Iraqi Kurdistan



ERBIL-Hewlêr, Kurdistan region 'Iraq',— While the independent production and sale of oil remains a point of pride for Iraqi Kurdistan, oil companies are doing great harm to the environment without any form of control. Semed Hussein, the President of the Kurdistan Regional Environmental Regulation and Protection Commission, recently explained that the work of international oil companies carries great risk for the local environment.

There are over 50 oil companies currently operating in Iraqi Kurdistan in the areas of oil exploration and extraction, including the American firms Exxon Mobil and Chevron, the French firm Total, and the Russian Gazprom – all three of which rank among the 10 largest oil companies in the world. This year oil companies hope to reach a level of production on the order of one million barrels of oil per day.

According to a report in Basnews, Semed Hussein warned about the implications of oil production for the environment at a recent press conference, saying “Oil companies are threatening the environment in the Kurdish region,www.Ekurd.net because they are not taking sufficient precautions. This situation also has negative effects on the health of our citizens.” Hussein went on to say that oil companies are cutting down trees and destroying green spaces in the process of oil exploration, and that they are not cleaning up spills and other waste.

Hussein continued to stress the long-term negative implications of such practices, telling reporters “If oil companies continue to do harm to the environment in this manner, it will have a major effect on green spaces, underground water reservoirs, and human health.”

According to the Climate Change Journal, companies such as Chevron and Exxon were ranked at the top of a list of the world’s 100 worst polluters.

Copyright ©, respective author or news agency, firatnews.com | rojavareport.wordpress.com

http://www.ekurd.net/mismas/articles/mi ... te7654.htm

[Anthea]

Maliki and Kurdish lawmakers discuss Kurdistan Region’s oil export

Today, January 12, a joint meeting was held between Prime Minister Nouri al-Maliki and the Kurdish members in the Iraqi House of Representatives.

MP from the Kurdistan Alliance bloc Adel Abdullah exclusively told PUKmedia that the meeting was attended by Deputy Prime Minister Hussain al-Shahristani and representatives of all Kurdish blocs in Baghdad, adding that the main issue that was discussed by the meeting attendants was the file of oil and the last step by Kurdistan region to export oil to Turkey, and the issue of sending the 2014 budget to the House of Representatives.

The Prime Minister spoke about the recent agreement signed between Kurdistan Region and the federal government, stressing that al-Maliki said that Baghdad put several choices on the mechanism of the export of oil from Kurdistan region oil fields, MP Abdulla said.

http://www.pukmedia.com/EN/EN_Direje.aspx?Jimare=18064

[Anthea]

Iraq's Maliki threatens to cut funds if Kurds pipe oil to Turkey

* Maliki says will never allow unilateral Kurd oil exports

* Turkish diplomat summoned over Kurd oil export row

* Kurdish delegation due in Baghdad later this week (Adds Turkish consul summoned, Kurdish delegation due)

By Suadad al-Salhy and Alistair Lyon

BAGHDAD, Jan 12 (Reuters) - Iraqi Prime Minister Nuri al-Maliki threatened on Sunday to cut Kurdistan's share of the federal budget if the autonomous region exports oil to Turkey via a new pipeline without central government consent.

The Kurdistan Regional Government said last week that crude had begun to flow to Turkey and exports were expected to start at the end of this month and then rise in February and March.

"This is a constitutional violation which we will never allow, not for the (Kurdistan) region nor for the Turkish government," Maliki told Reuters in an interview.

He reiterated Baghdad's insistence that only the central government has the authority to manage Iraq's energy resources.

"Turkey must not interfere in an issue that harms Iraqi sovereignty," Maliki said.

The central government and the Kurds differ over how to interpret the constitution and share revenue from the world's fourth-largest oil reserves. The Kurds are in theory entitled to 17 percent although they frequently complain they get less than that.

Maliki said the Kurds had not met their budgeted commitment to export 250,000 barrels per day of oil in 2013, with the revenue going to the national treasury, but that so far the government had not retaliated by reducing their share of the budget.

"We did not do that as we did not want to affect the Kurdish people and we were looking to find acceptable solutions...that would preserve national unity and the national wealth, but this year the situation looks difficult," Maliki declared.

Referring to a dispute over the costs of oil companies operating in Iraqi Kurdistan, he said: "We have been telling these companies...give us the oil and we will pay your costs, but they did not deliver, so there will be no payments."

Maliki said it was unfair to expect Baghdad to pay the oil firms' costs plus the Kurds' 17 percent budget share, when they had failed to meet their export target and oil revenue was not being channelled through the government.

Crude from Kurdistan used to be shipped to Turkey through a Baghdad-controlled pipeline, but exports via that channel dried up a year ago from a peak of around 200,000 bpd due to a row over payments for oil companies operating in the region.

Since then, the Kurds have been exporting smaller quantities of crude to Turkey by truck whilst laying their own independent pipeline, which was completed late last year.

Maliki met with Kurdish members of the Iraqi parliament later on Sunday and said he wanted to resolve the dispute through negotiation. A delegation from Kurdistan is due in Baghdad later this week to study the issue.

TURKISH ENVOY MEETING

Iraq's Deputy Prime Minister for Energy Hussain al-Shahristani summoned Turkey's consul in Baghdad on Sunday and reiterated his objection to Ankara's role in exports from Kurdistan.

Shahristani also said that Ankara had prevented representatives of the Iraqi oil ministry from supervising exports from Turkey's Mediterranean port of Ceyhan, as previously agreed.

"The government of Iraq holds the Turkish side legally responsibility for this act and reserves the right to demand compensated all damages resulted," Shahristani said in a statement.

Iraqi Kurdistan has prospered over the past decade, largely escaping the violence that has afflicted the rest of the country following the U.S. invasion that toppled Saddam Hussein.

Officials in Baghdad say the pipeline sets a dangerous precedent for other Iraqi provinces to pursue their own independent oil policies, potentially leading to the break-up of Iraq. U.S. officials have echoed that view.

Kurdish leaders publicly say they are committed to remaining part of a federal Iraq, rather than seeking secession, but oil is a highly sensitive issue in volatile relations with Baghdad.

Companies that have risked exploring for oil in Iraqi Kurdistan had welcomed its plans to pipe oil to Turkey as a signal they might begin to generate export income from their investments, despite Baghdad's objections.

Those companies include Gulf Keystone, Genel Energy , Norway's DNO, Hungary's MOL and Britain's Petroceltic and Afren. (Additional reporting by Isabel Coles in Arbil, editing by William Hardy)

http://www.reuters.com/article/2014/01/ ... EK20140112

[Anthea]

Erbil-Baghdad Ties Head for New Low Over Oil Exports



ERBIL, Kurdistan Region – Erbil-Baghdad relations are hitting a new low, after the Kurdistan Region said it was ready for independent oil sales and the Shiite-led central government threatened to cut off funding to the autonomous northern enclave.

"This is a constitutional violation which we will never allow; not for the (Kurdistan) region nor for the Turkish government," Iraq’s Prime Minister Nuri al-Maliki told the Reuters news agency in an interview.

He warned that, despite rows with the Kurdistan Regional Government (KRG) over energy issues, vast tracts of disputed territories and the Kurdish Peshmarga army which Baghdad insists should be placed under its control, the central government had resisted cutting funding from the annual budget.

"We did not do that because we did not want to affect the Kurdish people, and we were looking to find acceptable solutions that would preserve national unity and the national wealth,” Maliki said. “But this year the situation looks difficult," he warned.

The budget row has resurfaced every year, with Baghdad grudgingly going ahead with funding and Erbil complaining it has never received its 17 percent constitutional allocation from the budget. However, getting the 2014 budget through the Iraqi parliament appears a tougher challenge, due to the KRG’s resolve to go ahead with oil exports to Turkey.

With parliamentary elections scheduled for April and Baghdad facing a serious Sunni insurgency, Maliki’s government is under heavy pressure this year to take serious action against the KRG. This may include cutting the region’s budget to save face and appealing to its electoral constituents in Iraq.

In the meantime, cutting the budget could have serious implications for Iraq’s unity, increasing mutual mistrust and fueling calls for Kurdish independence.

Sources told Rudaw that Maliki has been uncomfortable about the KRG’s lack of response to an apparent agreement during a December 25 meeting with Kurdish Prime Minister Nechirvan Barzani.

“Maliki told Kurdish MPs in Baghdad that Barzani told him he would respond to the agreement within two days, but now several weeks have passed without getting any reply from Erbil,” according to a knowledgeable source.

In a meeting with foreign diplomats and representatives from international organizations in Kurdistan on Saturday, Kurdish President Massoud Barzani expressed hope that Baghdad and Erbil would resolve pending issues, including over oil and gas.

“There has been an exchange of visits, and currently talks are underway between the two sides to reach agreement on the outstanding issues, including Article 140 regarding funding for the Peshmarga forces and on oil and gas,” Barzani said.

“We are ready to play a role in addressing the challenges facing Iraq, but it is important that no side is marginalized in the political process,” he added.

A statement from Barzani’s office said that last week that US Vice President Joe Biden spoke to him by telephone after the KRG declared that oil exports had begun. The oil issue was one of the topics discussed, the statement added.

Meanwhile, Iraq’s Deputy Prime Minister Hussein Shahristani summoned Turkey's chargé d'affaires Efe Ceylan over the crude exports. "Iraq considers the export of oil through its international borders without government approval as a violation," Shahristani said after meeting the Turkish diplomat.

On Friday, Iraq’s oil ministry strongly denounced KRG’s announcement of oil exports and expressed “deep regret” and “astonishment.” It called the move a “flagrant violation of the Iraqi constitution.”

Furthermore, Maliki warned that, "Turkey must not interfere in an issue that harms Iraqi sovereignty."

Until now, Ankara has remained silent about the Iraqi accusations and increasing tensions between KRG and Baghdad. But Turkish officials continue to contend that oil exports from the northern Iraqi enclave are constitutional and do not violate any agreements between Ankara and Baghdad.

Last week, the KRG’s Ministry of Natural Resources said it would export two million barrels of crude oil by the end of January 2014 and is targeting sales of 10-12 million barrels for the month of December 2014.

http://rudaw.net/english/kurdistan/130120143

[Anthea]

Mosul want oil share with Kurdistan government

Mosul: The Governor of Mosul, Atheel Nujefi, says people in the city have called on him to tell the Kurdistan Regional Government (KRG) to give them their share in oil export revenue. Nujefi, a Sunni Arab, said they have the right to ask for their share of their province’s oil export revenue, which the KRG has developed in agreement with the Mosul governorate. “Our oil should serve the needs of our people, this is our right,’ Nujefi said.

A number of non-governmental organizations (NGO) in Mosul have started a campout in the province, calling on the KRG to give them their share of the oil revenue that is being exported from the province. Earlier this week, Kurdistan oil was exported to Turkey for the first time through the new pipeline connecting the KRG and Turkey. The move resulted in the Iraqi central government threatening the KRG with budget cuts. According to local Kurdish media, the KRG has shown it is open to dialogue with Mosul authorities regarding the issue of revenue sharing. basnews.com

[Anthea]

Awad accuses Turkey of corruption, Kurdistan Region of overstepping the Constitution by exporting oil

Baghdad: Member of Oil and Energy Parliamentary Committee, Uday Awad, accused the Government of Kurdistan Region of overstepping the Constitution by exporting oil to Turkey; describing Turkey of being a corrupt country that tries to harm Iraq’s sovereignty.

In a statement issued on Tuesday, Jan. 13, Awad said that the Government of Kurdistan Region has overstepped the Constitution by exporting oil to Turkey, exceeding its authorities and ignoring the Constitution stipulating that oil is a national wealth, acting on it independently noting that the Constitution does not allow the Region to act with it.

Awad pointed out that Turkey is a corrupt country that tries to harm Iraq’s sovereignty, it is not right to export oil to it, it is not right for it to deal with the Region through bypassing Federal Iraq and it territorial integrity. ninanews.com