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Changing the Direction of Krg Oil, From the Port of Jayhan to Nineveh Province

Changing the Direction of Krg Oil, From the Port of Jayhan to Nineveh Province

2023-06-30 21:49:00


In the first step after the publication of the budget law in the Iraqi newspaper Waqi'i, the Iraqi Oil Ministry suspended oil exports from Kirkuk to the (Kar) refinery in Erbil. Instead of Kirkuk oil, The Khurmala field, which is under the control of the Kurdistan Regional Government, will meet the needs of oil products in Nineveh province.
An informed source in Baghdad told (Draw Media) that the Iraqi Oil Ministry has ordered the suspension of Kirkuk oil exports to Kar refinery and Northern Oil Company immediately implemented the decision and suspended 60,000 barrels of oil per day.
After the start of the war against ISIS and the shutdown of the Beji refinery near Tikrit in 2014, the export of oil products to Kirkuk and Mosul has been suspended.
To solve the problem, The Iraqi government has decided to provide 100,000 barrels of Kirkuk oil per day to the two refineries (Kar) in Erbil and Qaywan refinery in Sulaimani, to meet the needs of oil products in Kirkuk and Mosul.
According to the contract signed by the Iraqi government with the two companies (Kar) and (Qaywan), these two companies will refine each barrel of oil at the amount of (8) dollars, which means that in the past afew years, Kar refinery has earned about (15 million) dollars monthly, and Qaywan refinery about (10 million) dollars.
The Kar refinery is close to the Kurdistan Democratic Party (KDP) and the Qaywan refinery is a partnership between Qaywan Company and the PUK General Administration.
According to the 2023 Iraqi budget law, the Kurdistan Regional Government (KRG) must deliver 400,000 barrels of oil daily to the Iraqi Oil Ministry through SOMO. 
The budget law says that if the Kurdistan Regional Government cannot export oil, the KRG must hand over the same amount of oil to the Iraqi Oil Ministry for domestic use.


 

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