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Superpower Struggle Puts Iraqi Kurdistan’s Oil Autonomy at Risk

It has been over two years since the Baghdad-based Federal Government of Iraq (FGI) placed an embargo on independent oil exports from the Erbil-based Kurdistan Region of Iraq (KRI). The legal basis for the halting of these essential flows to the finances of the semi-autonomous region of Kurdistan was the International Chamber of Commerce’s (ICC) order that they would not be resumed until Turkey paid the FGI the US$1.5 billion in damages for these allegedly unauthorised oil exports over many previous years.

Kurdistan’s Oil Independence Dream Just Got Shattered

IOCs active in Iraqi Kurdistan finally yielded to Baghdad’s calls for oil sales to be handled by SOMO.
For China, a fractious independent Kurdistan with strong former ties to the U.S. would make the administration of Iraq’s oil and gas sector much more difficult.
Despite controlling Iraqi Kurdistan’s oil sector post-2017 independence vote, Russia prefers to work with Baghdad’s central government.

Why Is Iraq Now Blaming IOC’s For Ongoing Delay To Kurdish Oil Flows?

It has now been just over a year since the Federal Government of Iraq imposed an embargo on oil exports from the country’s semi-autonomous region of Kurdistan.
Destroying all financial independence for the region, which is reliant on ongoing independent oil supplies, is one of the tools Baghdad has to erode Erbil’s autonomy.
The latest tactic of blaming international oil companies for the embargo still being in place is just another element.