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Iraq has plans for letting BP develop oil in Kirkuk is illegal, according to Kurds

20 Jan 2013
According to the Kurdistan Regional Government, it would really be an illegal matter if the central government of Iraq proceeds with a plan of allowing BP Plc (BP/) to develop the Kirkuk oil fields in the north of the country. The policies of Federal government have averted the semi-autonomous region from raising its crude-export capability to as much as 500,000 barrels per day, according to a statement on the KRG website. The government of Kurdistan would not give its right up for exporting crude and products and criticized the central government for describing the process as smuggling. The citizens of Iraq are simply tired of getting such threat and intimidation, which in the cynical pursuit of narrow political agendas serves only for creating division and strife, it said. The Kurds and the central government are entwined in a feud over disputed land and sharing of energy sales profit. The KRG delayed exports of crude by pipeline last month, with shipments at present limited to volumes being trucked to Turkey to be processed under a tolling contract. The central government of the nation is holding talks with BP to grow fields in disputed land in the Kirkuk area, Abdul Mahdy Al-Ameedi, the director general of the licensing department at the Oil Ministry in Baghdad, said in an interview today. The KRG said that it had not been for the federal government’s obstructionist strategies, the Kurdistan Region could now be exporting almost 500,000 barrels a day or some $ 18 billion per year. This is in addition to the inefficient, expensive and environmentally damaging oil ministry policy of gas flaring, which has cost the Iraqis an estimated $ 10 billion in lost revenue every year since the year 2003. The country holds the world’s fifth-biggest crude reserves, according to the BP Plc’s Statistical Review of World Energy. After Saudi Arabia, the nation is the biggest producer, in the Organization of Petroleum Exporting Countries. Source: [Bloomberg]
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