In numbers... Disclosure of financial losses as a result of stopping Kurdistan's oil exports[You must be registered and logged in to see this link.] |Today[You must be registered and logged in to see this image.]
Baghdad today - Erbil
Today, Monday (August 21, 2023), the adviser on oil affairs, Kovind Sherwani, revealed the size of the financial losses as a result of stopping oil exports from the port of Ceyhan through the Kurdistan region to Turkey.
Sherwani said in an interview with "Baghdad Today" that "the economic and financial losses since the fourth of April until today are about 28 million dollars per day, and the loss per month is 840 million dollars, and therefore the losses have exceeded 4 billion dollars."
He added, "With OPEC's decision related to reducing production, Iraq could have benefited by up to 200,000 barrels, and therefore even if the daily exports of the region's and Kirkuk's oil, amounting to 400,000 barrels, were reduced, the losses would be around $2 billion."
Earlier, Turkey stopped Iraq's exports of 450,000 barrels per day through the oil pipeline that extends from the Kurdistan region in northern Iraq to the Turkish port of Ceyhan on March 25.
Turkey's decision to suspend exports followed an arbitration decision by the International Chamber of Commerce that ordered Turkey to pay Baghdad $1.5 billion in compensation for damages caused by the Kurdistan Regional Government's export of oil without permission from the government in Baghdad between 2014 and 2018.
Attempts to restart the pipeline were delayed by last month's Turkish presidential election and discussions between the Iraqi government's Oil Marketing Company (SOMO) and the KRG over an export deal that has now been reached.
Sources told Reuters earlier that among the issues to be resolved was that Turkey seek to negotiate the amount of compensation ordered by the International Chamber of Commerce.
The sources said they also want to permanently resolve outstanding issues in other open arbitration cases before they agree to resume flows.
And the Kurdistan region suffers from a lack of liquidity due to the interruption of the pipeline, and Iraqi politicians and Kurdish lawmakers said that the region had no other choice but to approve the budget, from which it would receive 12.67 percent of the total 198.9 trillion dinars ($ 153 billion).
The loss in KRG revenue due to the 80-day oil shutdown is more than $2 billion, according to Reuters calculations based on exports of 375,000 barrels per day, plus the KRG's historical discount to the price of Brent crude.
The pipeline was also exporting about 75,000 barrels per day of federal crude.
Source: Baghdad Today, Reuters.