Free Trial

Iraq Looks at Budget Change to Restart Kurdistan Exports

OIL

Iraq is studying a change in its federal budget which would allow Bagdad to pay international oil companies operating in Kurdistan, enabling the resumption of oil exports via the Ceyhan pipeline, PM Mohammed Shia Al-Sudani said, cited by Bloomberg.

  • The change would require the government to pay an average of $8/b as a recovery cost for oil produced in Iraq outside of Kurdistan. The recovery cost in Kurdistan stands at $21/b.
  • The shutdown of the Ceyhan pipeline which exports oil from Kurdistan to Turkey has slashed the country’s revenue amid a drop in 470k b/d of exports.
  • Kurdistan’s production is now down to around 80-90k b/d, Al Sudani said.

Source: Bloomberg

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.