- Kurdistan has begun selling its oil into international markets in independent export deals, Reuters reported.

Trafigura snapped up the first cargo of Kurdish light oil -- known in the industry as condensate -- offered for delivery in October via the intermediary Powertrans. The oil was trucked across the country from a Kurdish field to Turkey, where it loaded at the start of the month.



Vitol was quick to follow, becoming the second major oil firm to buy Kurdish oil marketed independently of Baghdad, picking up a second 12,000 metric tonne (13,228 tons) cargo of condensate for loading at the end of the month. At around $890 a tonne, each shipment is worth over $10 million.



“By involving two of the world's largest trading houses, Trafigura and Vitol, Kurdistan has made it difficult for Baghdad to retaliate, as it depends on those firms for a proportion of its refined oil imports like gasoline and diesel. If Baghdad were to decide to shop elsewhere, it could face paying much higher prices for its fuel” reported Reuters.



Iraqi officials say any deals independently agreed with Kurdistan are illegal and trading Kurdish oil and gas products without the central government's consent amounts to smuggling.



Trafigura declined to comment, while Vitol confirmed it had bought a parcel of Kurdish origin for loading in Turkey, declining to comment any further on the deal.



"The small parcel was bought in a public tender, FOB Toros terminal, Turkey. No further comment," spokesman Mark Ware said.





Kurdistan's potential as a major oil producer and exporter has proved to have greater weight with foreign oil firms than warnings by Baghdad that signing contracts with the autonomous region could put their contracts in the south at risk.



Exxon Mobil has been followed by other majors including Chevron, Total and Gazprom, as production-sharing deals with Arbil are seen as a far better arrangement than Baghdad's fee-for-service contracts.