Incremental progress towards resuming pipeline exports from northern Iraq to Turkey is being made, although there remains little clarity on when a return can be expected. Iraqi state marketer Somo has sent provisional contracts to the trading firms which are owed volumes from the Kurdistan region under prepayment contracts, but an informed source tells MEES that the contracts “contain things that are contrary to the agreement and discussions,” without delving into detail.
While a provisional agreement was reached between Baghdad and the KRG more than a month ago on 4 April, stumbling blocks continue to prevent a restart (MEES, 7 April). For instance, Iraqi MPs have objected to Erbil’s choice of Citi Bank in the UAE as the bank where oil export revenues should be deposited. MP Uday Awwad filed a complaint on 30 April with Iraq’s Federal Supreme Court (FSC) that this is unconstitutional as it is outside the control of the Central Bank of Iraq (CBI). (CONTINUED - 248 WORDS)