Kurdistan Regional Government extends oil exports
Ashti Hawrami said: "We are in ongoing discussion with the Iraqi government about paying the foreign companies’ money so the region can continue exporting oil and increase the volume of exports.
"The region previously selected today as the last day for exporting oil but because of Ramadan Eid holidays and to give more time to all parties, the region extended the oil export timeline to the middle of September. If the companies' money is not paid by that time, we will make a decision about it."
The region restarted oil exports temporarily for a month during August after halting exports in April over a payment dispute.
Hawrami said last month that the region would halt oil exports at the end of August if Baghdad did not make all outstanding payments to companies working in the oil sector in the region.
The KRG also said last month that it would restart oil exports in the first week of August at 100,000 barrels per day to ease tension between Erbil and Baghdad.
The region wants to end the payment dispute with Baghdad. According to the KRG, Baghdad has to pay $1.5bn to companies making investments in the region.
Earlier Hawrami set the end of August as a deadline for making payment, said a KRG statement.
The relation between Baghdad and Erbil deteriorated after Baghdad threatened to blacklist foreign companies that sign oil contracts with the region and cancel the contracts.
Baghdad and Erbil are in a long-running dispute over the Peshmarga budget, control of territories and oil contracts. The central government labeled oil deals signed with the Kurdistan Region as illegal because the deals were signed without prior approval from the central government.
Baghdad says only the central government can agree to petroleum deals. Iraq’s government has already punished foreign companies for signing up to explore oil in the northern Kurdistan area.
AKnews
