IRAQ/FILE: Iraqi Deputy Prime Minister for Energy Hussain al-Shahristani accuses Iraqi Kurdistan of sabotaging the country's budget by halting its oil exports

Record ID: 344166

  • Title: IRAQ/FILE: Iraqi Deputy Prime Minister for Energy Hussain al-Shahristani accuses Iraqi Kurdistan of sabotaging the country's budget by halting its oil exports
  • Date: 3rd April 2012
  • Summary: BAGHDAD, IRAQ (APRIL 2, 2012) (REUTERS) IRAQ'S DEPUTY PRIME MINISTER FOR ENERGY, HUSSAIN AL-SHAHRISTANI, AND IRAQ'S MINISTER OF OIL, ABDUL KAREEM LUAIBI, WALKING TO NEWS CONFERENCE ROOM / GREETING REPORTERS AUDIENCE / SHAHRISTANI AND LUAIBI SEATED FOR NEWS CONFERENCE (SOUNDBITE) (Arabic) IRAQ'S DEPUTY PRIME MINISTER FOR ENERGY, HUSSAIN AL-SHAHRISTANI, SAYING: "There ar
  • Embargoed: 18th April 2012 13:00
  • Keywords:
  • Location: Iraq
  • Country: Iraq
  • Topics: Business,International Relations,Economy,Politics,Energy
  • Reuters ID: LVAA1ZRWYF69LI7RJWUEGR4E4YS7
  • Story Text: Iraqi Deputy Prime Minister for Energy Hussain al-Shahristani accused Iraqi Kurdistan on Monday (April 2) of sabotaging the country's budget by halting its oil exports and said crude from the autonomous region was instead smuggled over the border, mainly to Iran.
    The charges threatened to exacerbate a long-running dispute between Baghdad's central government and the Kurdistan regional government over oil rights, political autonomy and land that risks upsetting Iraq fragile sectarian and ethnic balance.
    Baghdad's accusations came after Kurdistan on Sunday (April 1) said it was halting its oil shipments of around 50,000 barrels per day in protest against what it said was the central government's failure to pay oil companies working there.
    "There are large amounts of money that will cause a budget deficit if they are not collected. The government must look into taking the appropriate actions in order to preserve the Iraqi's people's fortunes and regaining this right, which is the right of all Iraqis, not any one particular region," Shahristani told reporters during a news conference in Baghdad, without giving details on what action Baghdad would take.
    "Most of the (crude produced in the region) is being smuggled outside Iraq, primarily through the Iranian borders," he added.
    For his part, Iraq's Minister of Oil, Abdul Kareem Luaibi, said the ministry has detailed reports and indications about the smuggling.
    "We have indications and detailed reports on the border points used to smuggle crude from the region towards Iran and most of the smuggled crude goes through Iraqi borders, through the Gulf ports of Bandar Abbas and Khumaini Port and are sold at prices much lower than the international standard," Luaibi told reporters.
    Kurdistan oil exports make up a small fraction of the OPEC nation's 2.3 million bpd shipments, but the payment dispute feeds into a wider conflict between Iraqi Arabs and ethnic Kurds over the region's right to autonomy from the Shi'ite-led central government.
    Kurdistan government officials did not immediately respond to a request for comment on the accusations.
    Baghdad said only the central government can control oil rights and refuses to fully recognize profit-sharing deals signed by Kurdistan. But the region, autonomous since 1991, said it can develop oilfields in its area, a disagreement that has trimmed payments to oil firms such as Norway's DNO <DNO.OL>.
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