Iraq to select four companies to transport oil to Iran

19 March 2018
State oil marketer says delays stemmed from contractual procedures

Iraq is planning to choose four companies to ship crude from its Kirkuk oil fields to Iran, according to Alaa al-Yasiri, the head of Iraq’s state oil marketer Somo.

Iraqi Oil Minister Jabar al-Luiebi announced a deal to export oil from Kirkuk to Iran in November last year, but so far no deliveries have taken place.

Speaking in Baghdad, Al-Yasiri said delays in shipping Kirkuk crude to Iran stemmed from contractual procedures in selecting trucking companies and were not due to security concerns.

“We decided that trucking 60,000 barrels per day of crude through one shipping company is a tough job to handle,” Yasiri said. “With four shippers on board, we will make sure the flow will not be interrupted.”

Under current plans, shipping of crude to Iran will start at a rate of 40,000 barrels a day (b/d) once the four companies are awarded contracts.

Talks are continuing between Baghdad and the Kurdish Regional Government (KRG) to try to find an agreement, which will allow crude from Kirkuk to be exported via the pipeline to Ceyhan.

The Ceyhan pipeline is controlled by the KRG, while the Kirkuk field has been controlled by Baghdad since October.

Speaking in Baghdad, Al-Yasiri said Al-Luaibi was exchanging letters with Kurdish Oil Minister Ashti Hawrami to try to resolve the Kirkuk exports issue.

Kirkuk’s biggest oil fields are not producing as there is not enough capacity to transport crude from the fields by truck.

In October last year, Baghdad used military force to take control of the Kirkuk region from the KRG.

 

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