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Iraq Says Would Sell Oil Via Iran

Iraq Says Would Sell Oil Via IranIraq Says Would Sell Oil Via Iran

The Iraqi government would consider selling crude through Iran, should talks with the autonomous Kurdish region on an oil revenue-sharing agreement fail, a senior oil ministry official in Baghdad said.

Iraq’s State Oil Marketing Organization plans to hold talks with the Kurdish Regional Government, possibly next week, about Iraqi oil exported through Turkey, Deputy Oil Minister Fayadh al-Nema said in an interview on Friday, Reuters reported.

“If the negotiations come to a close” without an agreement, “we will start to find a way in order to sell our oil because we need money, either to Iran or other countries”, he said by telephone. Iraq, OPEC’s second-largest producer after Saudi Arabia, depends on oil sales for 95% of its public income. Its economy is reeling under the double impact of low oil prices and the war against the self-styled Islamic State terrorist group.

The Kurdistan region produces around 500,000 barrels per day on its territory and exports those volumes via Turkey. Baghdad would not be able to reroute those volumes to Iran but could order shipments of some 150,000 bpd via Iran that are being produced in the nearby province of Kirkuk.

An agreement between Iran and Iraq could function in a similar fashion as oil-swap deals Tehran has had with Caspian Sea nations, according to an oil official who asked not to be identified.

Iran would import Iraqi oil to its refineries and export an equivalent amount of its own crude on behalf of Baghdad from Iranian ports on the Persian Gulf.

Financialtribune.com