Mr. Abdul-Kareem Luaibi, who is oil minister of Iraq, has said that Vitol, which is an oil trading company, has apologies to Iraq for exporting oil through turkey without taking their permission. This oil was bought from Kurdish.
Baghdad has raised voice against Kurdistan on the matter of selling oil from northern Iraqi province. According to the government of Baghdad only the central government has the right to export oil. They have also said that they will pay to the KRG.
But according to KRG, their exports are totally legitimate.
Few reporters asked Mr. Luaibi when he was in Vienna for an OPEC meeting that how Iraq is dealing with those three companies who are buying crude oil from KRG and exporting them to world market.
Luaibi said that Vitol has denied the Kurdish amount and they also have apologized for their mistake. And a meeting will take place in few days to discuss about Lukoil. Luaibi has not said anything about Trafigura.
Kurdistan has started selling oil to oil traders in October but Baghdad has claimed that they have signed the agreement which says that Baghdad has the full control of Iraq’s market last year.
Luaibi said that Kurdistan is supplying about hundred thousand barrels per day to the government of Iraq but Kurdistan signed a deal of 200,000 barrels per day with the government. And the oil production of Kurdistan is rising but it contributes a minute amount to the total oil production of Iraq.
Luaibi has also said that Baghdad is informed by the neighboring about the smuggling of the crude oil of Iraq. He also said that Iraqi government will take actions against those companies who are buying the smuggled oil.
Although Luaibi did not told anything about the amount of oil which was smuggled but he said that the amount should the difference between the production and supplied amount by the Kurdistan.
He said that the amount of oil which was supplied to Baghdad by Kurdistan was more than 180,000 bpd but it has gone down to less than 100,000 bpd in this month.
Kurdistan protested on the matter that the payments for producing oil were not given to them by the Iraqi governments.
Iraq’s deputy prime minister of energy Mr. Hussein al-Shahristani said that in October an initial payment was given to KRG but no further payment will be made.
According to the reports Kurdistan is not getting the fuel by which they can run their power stations. The supply of this fuel is controlled by the central government of Iraq.