Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Iraq files case against Turkey over Kurdish oil exports  Join our daily free Newsletter

MENAFN - AFP - 23/05/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - AFP) Baghdad launched legal action against Ankara Friday after oil from Iraq's autonomous Kurdish region was exported to international markets without the cental government's consent, potentially worsening already-poor ties between the neighbours.

The sudden decision to call for arbitration by Iraq, which came after shipments began on Thursday evening, is the latest move in a years-long row in which Baghdad has insisted it has the sole right to export Iracaught itqi crude.

The dispute over the exports, which the US has said could further destabilise Iraq, also throws into doubt Prime Minister Nuri al-Maliki's bid for re-election after polls last month, with his campaign expected to hinge on whether or not he can secure Kurdish backing.

The central government's oil ministry said in a statement that it has "filed a request for arbitration against the Republic of Turkey and its state-owned pipeline operator BOTAS... with the International Chamber of Commerce (ICC) in Paris."

"By transporting and storing crude oil from Kurdistan, and by loading that crude oil onto a tanker in Ceyhan, all without the authorisation of the Iraqi Ministry of Oil, Turkey and BOTAS have breached their obligations under the Iraq-Turkey Pipeline Agreement," it said.

The ministry said it was asking the ICC to order Turkey and BOTAS to "cease all unauthorised transport, storage and loading of crude oil," and added it was seeking financial damages of more than 250 million.

Turkish Energy Minister Taner Yildiz told reporters earlier that shipments of oil pumped from the autonomous Kurdish region in northern Iraq and stored in Turkey's Mediterranean port of Ceyhan began on Thursday night.

Yildiz insisted that Iraq would "govern the future sales", but the exports still came in defiance of Baghdad, which insists it has the sole right to develop and export the country's prized natural resources, which account for nearly all government income.

A Turkish official, speaking on condition of anonymity, told AFP that Ankara had not been informed of Iraq's decision to take legal action, while an ICC spokeswoman said she was not allowed to confirm any details of potential cases.

Ties between Iraq and Turkey, which had been on the upswing as recently as 2010, have since dramatically worsened with the ICC case likely to damage fledgling efforts to improve them.

The two countries differ in particular over the Syrian conflict as well as Turkey's dealings with Iraq's Kurdistan region.

Diplomats say the two countries' leaders also have strained personal relations.

- Chilled Ties -

The latest dispute is also expected to further chill ties between Baghdad and Iraqi Kurdish authorities, just weeks after officials hailed an interim goodwill agreement under which Kurdistan would export 100,000 barrels of oil per day via central government-controlled pipelines.

Kurdish authorities based in the northern city of Arbil said Friday that revenue from the sales would be deposited in Turkey's state-owned Halkbank, insisting they had acted transparently.

The Kurdish region would "continue to exert its rights of export and sell oil" but remained committed to negotiate "in good faith" with Baghdad "to reach a comprehensive settlement" on the sharing of energy supplies.

Baghdad and Arbil have long-standing disagreements over a litany of issues, including whether or not Kurdish officials can sign deals with foreign oil companies without the central government's consent.

They are also at loggerheads over a swathe of disputed oil-rich territory.

Washington warned that the oil export move could destabilise Iraq, with State Department spokeswoman Jen Psaki telling reporters that the US does not "support exports without the appropriate approval of the federal Iraqi government, and certainly we do have concerns about the impact of those continuing."

"Iraq is facing a difficult situation," she said.

"We've been clear that it's important for all sides to take actions to help the country pull together and avoid actions that might further exacerbate divisions and tensions."

The tensions come as Maliki looks to secure a third term in power after April 30 elections in which his bloc emerged with by far the most seats in parliament, though well short of a majority.

The incumbent premier is likely to need some Kurdish support if he is to secure the seats necessary to win re-election.

Mete Goknel, an analyst and a former BOTAS director, said that from Ankara's perspective, "Iraqi oil is the best option for Turkey because it is a cheaper and more stable source of energy."


 


AFP




  MENA News Headlines
 Sep 18 2014 - UAE- DED and DQG host Share Best Practice ConferenceKhaleej Times
(MENAFN - Khaleej Times) The Department of Economic Development (DED) and Dubai Quality Group on Wednesday hosted the 'Share Best Practice Conference and Exhibition 2014' with an aim to share the ...

 Sep 18 2014 - UAE- Dolphin Energy achieves 5 trillion SCF output milestoneKhaleej Times
(MENAFN - Khaleej Times) The Dolphin Project involves the production and processing of natural gas from Qatar's North Field, and transportation of the dry gas by sub-sea export pipeline from Qatar to ...

 Sep 18 2014 - Acer unveils new line-up, eyes increased market share in UAEKhaleej Times
(MENAFN - Khaleej Times) Acer unveiled its new line-up of touch-based products portfolio at its first-ever annual showcase in Dubai on Wednesday.The Taiwanese company, which is No.1 for the last 16 ...

 Sep 18 2014 - Qatar- HH the Emir Sends Congratulations to President of ChileQatar News Agency
(MENAFN - QNA) HH the Emir Sheikh Tamim bin Hamad Al-Thani sent Thursday a cable of congratulations to President of the Republic of Chile Michelle Bachelet on the occasion of the anniversary of her ...

 Sep 18 2014 - Qatar- HE Premier Sends Congratulations to President of ChileQatar News Agency
(MENAFN - QNA) HE the Prime Minister and Interior Minister Sheikh Abdullah bin Nasser bin Khalifa Al-Thani sent Thursday a cable of congratulations to President of the Republic of Chile Michelle ...

 Sep 18 2014 - President Rouhani Condemns Massacre of Innocent People by ISIS ElementsQatar News Agency
(MENAFN - QNA) Iranian President Hassan Rouhani has condemned the killing of innocent people by terrorist groups. He made the remarks in an exclusive interview with the NBC News Network in Tehran ...

 Sep 18 2014 - FBI: ISIS May Take More Hostages in Order to Force US ConcessionsQatar News Agency
(MENAFN - QNA) US Federal Bureau of Investigation (FBI) Director James Comey said in written testimony to Congress Wednesday that Americans within reach of the Islamic State of Iraq and Syria (ISIS) ...

 Sep 18 2014 - WHO Investigates Children Deaths after Measles Vaccination in SyrianQatar News Agency
(MENAFN - QNA) The World Health Organization (WHO) and UN Children's Fund (UNICEF) have initiated the investigation into the death of 15 children in Syria who were vaccinated against measles, UNICEF ...

 Sep 18 2014 - UAE- 787-9 Dreamliner, A380 to boost Etihad's operationsKhaleej Times
(MENAFN - Khaleej Times) "The new jumbos will deliver new, industry-leading in-flight product," said James Hogan, the chief executive of Etihad Airways, while speaking to more than 700 delegates from ...

 Sep 18 2014 - UAE- Komatsu awards Galadari for superior market shareKhaleej Times
(MENAFN - Khaleej Times) Hisashi Shinozuka, Director and Senior Executive Officer of Komatsu Ltd and President of Komatsu's Construction & Mining Equipment Division, presented the 'Best achievement ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help