LONDON: Iraqi Kurdistan’s drive to independent oil exports has been delayed by customs red tape at a second Turkish port, sources familiar with the matter said yesterday.
The autonomous region began crude oil exports in early January this year to Turkey by truck and then by sea from the port of Mersin on the Mediterranean.
The second port of Dortyol began receiving truck shipments around mid-June but sea exports have yet to start. “Custom problems, which will soon be cleared. They expect around 70,000-80,000 tonnes from Delta,” a source close to the matter said when asked the nature of the problem.
The Delta terminal at Dortyol, close to the major port of Ceyhan, is included in contracts as a possible pick up point at the sellers’ option but no tankers have yet called there. “So far loading is in Mersin only,” a market source said.
Once the customs hurdle is clear, exports could rise to around 200,000 tonnes a month, or just over 50,000 barrels per day (b/d). Volumes coming out of Mersin are around 120,000 tonnes a month, or just over 30,000 b/d.
The Kurdish crude called Taq Taq is a very light gravity grade mostly sold into Austrian and German refineries. Kurdistan is also exporting condensate, a very light oil, at around 15,000 b/d.
The central government in Baghdad has called these exports smuggling and has sent letters warning of possible legal action to its customers.
Austria’s OMV has become the main buyers of the crude after snapping up June and July cargoes, taking it through Trieste to its refineries.
It is already on Baghdad’s blacklist owing to its exploration interests in Kurdistan.
Reuters
