Oil Exports from Kurdistan to Resume on September 27
By Tsvetana Paraskova of OilPrice.com
Following agreements between Iraq’s federal government, the Kurdistan Regional Government, and international oil companies, exports from Kurdistan are set to resume on Saturday, September 27. Norway-based DNO ASA announced that exports will restart on that date.
Despite the resumption of exports, DNO will not be shipping its crude directly to the Iraq-Turkey pipeline. Instead, the company will deliver the Kurdistan Regional Government’s share of sales from its operated Tawke license for export, while the balance of sales from the foreign contractor group consisting of DNO and Genel Energy International Limited will continue to be sold to local buyers.
Both DNO ASA and British Genel Energy have not signed the deal, citing the need for guarantees from the Kurdistan Regional Government to receive owed payments before committing.
“DNO is pleased that exports of oil from the Kurdistan Region have been unlocked and will now flow to international markets,” said DNO executive chairman Bijan Mossavar-Rahmani.
After a halt of two and a half years, oil exports from Kurdistan are expected to add about 230,000 bpd to the international market starting September 27. This additional supply comes at a time when oversupply concerns are rising with the end of the peak summer demand season.