Kurdistan region rallied on Baghdad and sold oil on world markets
NOVEMBER 18, 2015

LONDON (Reuters) - announced the Iraqi Kurdistan region, which enjoys a degree of autonomy, for the first time the secret operations of the oil export details, and said it planned to sell other amounts, whether she wants Baghdad or not, to his need for money to survive and fight the «Islamic State».
He drastically, minister of mineral resources in the region, it's to avoid oil monitoring have been smuggled in many cases by Israel, and move directly between anchored ships off the Malta coast, and ships shenanigans used to increase the difficulty of follow-up on the part of Baghdad.

Kurdistan says it was forced to get around Baghdad, and start exporting oil directly, because Iraq's refusal to abide by the agreed budget in 2014 and 2015. The current and previous governments Alaracatan said the Kurds did not observe for the transfer of agreed quantities of oil to Baghdad agreements.
Kurdistan is entitled to get 17 percent of the total Iraqi budget. He says the region needs a stable revenue to pay its obligations, and spending a million refugees fleeing from the war in Syria and Iraq, as well as the financing of the Peshmerga, which is fighting Islamist militants Army.

Kurdistan and issued more than 500 thousand barrels per day of oil, or about seven Iraqi exports, believes that Baghdad is now at least partially accept direct Kurdish exports went up to ten countries.

Hawrami said in an interview «de facto discrimination against us, we were financially for a long time. By 2014, when he did not receive the budget, we decided that we need to start thinking in a separate sales of oil. »
With the new pipeline is complete, the Kurdistan Regional Government still needs to find buyers for its oil, equivalent to a large tanker every two days.

The majority of customers are afraid to approach the oil of Kurdistan, because Baghdad has threatened to sue any buyer. But major oil companies such as «Exxon Mobil» and »BP» joint projects worth billions of dollars with Baghdad.

Hawrami said «was a new game entirely on us. Buyers wanted to rent the Kurdistan Regional Government especially crude oil tankers. We did not know anything about the shipping industry or shipping. »
And continued with the Government of the Territory veteran oil trader Murtaza Lakhani, who was working company «Glencore» in Iraq in the first decade of the third millennium, to help find the ships.
Hawrami said «he knew exactly who will deal with us and reject. And open the doors for us and select the shipping companies are willing to work with us. »

Hawrami says that it was premature to disclose dealers and shipping companies and buyer Kurdish oil names. Lakhani also declined to comment.
Iraq and sued the company «Marine Management Services» Greek shipping, because of their role in the Kurdish exports. Sources in the market that several trading houses, including «Trafigura» and »Vitol» dealt Kurdish oil. Both companies declined to comment on their respective roles in oil sales.

He drew some buyers tankers to Ashkelon in Israel, where he was unloading oil in storage facilities, to re-sell it later to buyers in Europe.
Kurdish oil sale and also to Malta, and the transfer into the sea from a ship-to-ship, which helped to hide the end-buyers and thus protected them from the threats of the Iraqi state oil company.
The region plans to increase exports by up to one million barrels, and wants to also become a source of large quantities of gas, which would solidify his feet on the global energy map.
The focus of the developments in the last two years because of disputes on the budget.
Hawrami said «simply can not return to the old arrangements with Baghdad and the expansion of the financial gap again.» The «will accept a real budget can for Baghdad to comply with them without conditions, but we do not want to be a party in a virtual budget not worth the paper written by value.»

Hawrami says that the Iraqi state budget for 2014 requires that Kurdistan issued 400 thousand barrels per day of oil, which is simply not technically feasible at that time, because of the lack of export pipelines paths.

Kurdistan got $ 500 million from the state budget allocations in January 2014, instead of the expected amount in the budget ranges between one billion and 1.2 billion dollars. Then reduced budget transfers in February more, then transfers stopped by March / March of last year.
Hawrami said «demanded Baghdad's oil did not have. And went our delegation headed by Prime Minister Nechirvan Barzani to Baghdad to try to identify what is happening. But they did not seem interested in listening to our arguments and continued in their decision to cut our budget. »

He said «so we had to manage our affairs and to accelerate the completion of pipelines. By May / May completed the basic infrastructure and we are ready for independent sales. »
And by the time the new pipeline, from Kurdistan to the Turkish coast on the Mediterranean Sea, is ready to replace the old line, which is due to replace the Saddam Hussein era, the region was virtually bankrupt.
Financial liquidity has had a limited, and he had failed to pay salaries for workers in the state, including the army when he seized organization «Islamic State» over large areas of central Iraq and the Kurdistan region itself.

The region owes hundreds of millions of dollars in arrears for companies such as «Ginel» and »DNO» figs are developing oil fields in Kurdistan.
And gradually it began to buyers and dealers use their ships to transport oil Kurdish, but Baghdad filed a lawsuit in the United States and threatened to sue touches of oil.
The shipment has been stuck in the United States for several months, before the tanker can sail back to Europe, where resold. Since then, the Kurdish oil did not cross the Atlantic Ocean.

And it suspended another shipment in Morocco. Sent the Iraqi oil marketing company «Sumo» Warnings for each adult customers in Europe and Asia.
Hawrami said «given back the whole year 2014 is successful a great success, because we did not face the trouble, but with two ships, one in the United States and one in Morocco ... and we were able to close the year (2014) lag behind the salaries of one month's pay.

The «This was an extraordinary achievement, as was the organization of the Islamic state to attack our land and we have more than a million Syrian refugees and internally displaced Iraqis. All of this happened burden we have not seen a penny of Baghdad. »And allowed independent oil sales in 2014 to Kurdistan to borrow about three billion dollars of sources, including Turkey and commercial houses.
Hawrami said «happened to us marked a turning point in relations with Turkey. The strategy for the relationship and they were very supportive to us incredibly. »

* Economic independence
He appeared in the hopes of improved relations with the central government at the end of last year, after the new government came to power, headed by Haidar al-Abbadi instead of Nuri al-Maliki.
Hawrami said «it was a new atmosphere. And we hope that allows us to go beyond our differences. »
In December / December 2014 and signed a deal Baghdad and Erbil movement of Kurdistan under which about 550 thousand barrels per day on average for »Sumo» during 2015, you get 17 percent of the Iraqi budget, more than $ 1.1 billion a month.

The agreement began to fall apart almost immediately. She said that Baghdad Erbil does not shift the agreed upon quantities of oil, but did not send $ 200 million in January, instead of $ 1.1 billion.
From January to June of Baghdad not transferred to Arbil only about two billion dollars overall, less than 40 percent of the amount predicted by the Kurds.
Hawrami said «in February February 2015 we went back to Baghdad to discover Bmazanihm they threw out of the window and became simply deal including the hands of liquidity. We told them that the state workers' salaries account for about $ 750 million, half of it for security and the peshmerga, and therefore how we live only a third of our budget. »
The «but they told us that the available liquidity is all that they have because of the collapse of oil prices and their inability to fill the budget deficit. And by March / March we came to the conclusion that we have no choice poor start independent oil sales again. »

It insists Baghdad to confirm its commitment to the Constitution. Saad al-Sabri, a spokesman for Prime Minister Haider al-Abadi «the party who did not abide by the text of the agreement is the regional government does not the federal government.»
The «we hope to have the agreement Obermnah in the beginning of a new phase of cooperation and coordination before. Unfortunately, what has happened is that the regional government did not send the agreed quantity to the Sumo. »

Hawrami says that the number of countries that receive the Kurdish oil rose until November 2015 to about ten, but he declined to give their names. It has already been reported by Reuters that Kurdish oil found its way to countries such as Israel and Hungary.
And it allowed independent sales for the Kurdistan Regional Government to achieve income of between 800 000 850 million dollars a month starting from July, to enable them to payment of salaries, and pay the costs of the continuing oil companies such as «Ginel».

However, the collapse of oil prices since 2014 has led to an increase in the difficulty of bridging the shortfall in funding.
Until November the region was behind three months on payment of salaries, but Hawrami says he hopes to fill this deficit through an increase in production in 2016, it is also looking forward to the sale of some assets and infrastructure to allow financial liquidity.

Even today, the region is still the government owes three billion dollars to its creditors in 2014, but Hawrami hopes to repay this debt, or at least reduced significantly over 2016.
On the other tasks a sharp reduction in government spending on items such as fuel subsidies in 2016, and try to increase non-oil budget. Hawrami says he sees initial signs that Baghdad is moving gradually to withdraw its opposition to the independent oil sales.

And still «Sumo» threatening to sue the Kurdistan oil buyer, but it appeared to bow to take over the responsibility of Kirkuk, Erbil, which is not subject to the authority of the Kurdistan Regional Government field, but the Kurds in charge of the management of its exports amounting to 150 thousand barrels per day for months through Turkish ports. Hawrami said «If you ask any Kurd will tell you constantly that the main dream is independence. But on the level of government it was the main focus of the policies on economic independence. We aspire to solve our problems and we have sufficient resources to do so. »

The Kurdistan region of Iraq, demanding the extradition of 550 thousand barrels of oil per day
BAGHDAD - (dpa) said Iraq's oil minister, Adel Abdul-Mahdi, yesterday that dues Kurdistan financial territory disbursement of the federal budget for Iraq for the next year is associated with the establishment of the province to hand over the Iraqi oil marketing company «Sumo» the amount of 550 thousand barrels per day, issued through Kurdistan pipeline to the port of Ceyhan, to be sold under the supervision of the federal government.

Said Abdul-Mahdi during hosted yesterday in the Iraqi parliament to discuss the federal public budget for Iraq Project 2016 «that the central government, halted the region's share after stopping the latter for his commitment to hand over its share of oil production for several months and the commitment of the government to pay dues territory in the event of his extradition 550 thousand barrels per day» .
He added that «licensing contracts has made $ 337 billion versus $ 36 billion to companies for extracting value».
On the other hand called Abdul-Mahdi to »launch a campaign to encourage investments in the oil and other sectors, as well as encouraging national investments, to make up for the shortfall in the budget and increase state revenues».
And he called for a «fundamental amendments to the oil licensing contracts being concluded at a time when oil prices were high.

Parliament ended yesterday I read the report and discuss the draft general budget of the Federal Republic of Iraq for fiscal year 2016 and provided financial and legal committees, the Parliamentary, where the report said that the total public budget expenditures for the next year amounting to 106 trillion Iraqi dinars, by a deficit exceeding 22 trillion Iraqi dinars, and what constitutes 21 percent of the total budget expenditures.