Turkey's Halkbank to process KRG oil export payments

Turkey's Halkbank to process KRG oil export payments
2.5 5

Published September 8th, 2015 - 06:02 GMT via SyndiGate.info

Rate Article:

 
PRINT Send Mail
comment (0)
A deal on exports between the KRG and Iraqi central government soured over payments. (File photo)
A deal on exports between the KRG and Iraqi central government soured over payments. (File photo)
Follow >
Click here to add Baghdad as an alert
Baghdad
,
Click here to add Halk Bank as an alert
Halk Bank
,
Click here to add Iraqi central government as an alert
,
Click here to add Kurdish regional government as an alert
Kurdish regional government
,
Click here to add Nechirvan Barzani as an alert
Nechirvan Barzani

Oil revenue from exports through Turkey's Ceyhan port will, from now on, be deposited at Halkbank, the Kurdish Regional Government (KRG) Prime Minister Nechirvan Barzani announced Monday.

Previously, the money from oil exports would be paid to the KRG directly, but now the money will first be deposited with Halkbank and then it may be accessed by the KRG, Barzani said.

Under the Dec. 2, 2014 deal between the Iraqi central government and the KRG, Erbil agreed to export 300,000 barrels of oil per day from Kirkuk, and 250,000 barrels of oil per day from northern Iraq, under the supervision of Baghdad’s oil marketing company, SOMO. 

In return, Baghdad was to send the KRG a 17 percent share, of around $17 billion a year, from the federal budget. 

However, soon after the deal, disagreements emerged between the sides with Erbil claiming that Baghdad had not sent Erbil's full share from the budget, while the central government argued the KRG had not delivered the promised amount of crude oil from Kirkuk. 

Moreover, Erbil has stopped selling oil under the supervision of Baghdad since July 1, and has sought other means to export its crude oil. 

Speaking on the problems with Iraqi central government, Barzani said that he was ready to travel to Baghdad to resolve any conflict.

"We have a good dialogue and relations with Baghdad," Barzani assured.

 

© Copyright Andolu Ajansi

Add a new comment

 avatar