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Kurdistan Begins Crude Transfers To Baghdad In New Budget Law

OIL

The Kurdistan Regional Government (KRG) has been delivering 50-90k b/d of crude to the Iraqi Federal Oil Ministry, which is funding production at private refineries in Erbil according to the Iraq Oil Report.

  • The transfers are a sign of the KRG’s willingness to comply with the 2023 budget law, requiring 400k b/d of transfers for a share in the federal budget.
  • Earlier disputes over the budget had halted exports from the Kurdistan region and led to international arbitration, resulting in Turkey closing the ~450k b/d Kirkuk-Ceyhan pipeline.
  • The pipeline, which the KRG uses to export oil via Turkey remains closed, with discussions on reopening set to feature in Turkish President Erdogan’s expected visit to Baghdad.

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