Iraq’s Kurdistan sells first crude cargo in defiance of central government

On Friday, the crude pumped from the Taq Taq oilfield of Genel Energy plc was transported over Iraq’s northern border with Turkey and sold via tender for loading in April, Reuters reported.
 
One trader, speaking on condition of anonymity, said the cargo sold was 30,000 tons and worth around 22 million US dollars.
 
"I said we may have interest for this 30,000-ton cargo and they (Powertrans) said we already sold it," the prospective buyer said.
 
The German-based energy firm S.E.T. Select Energy GmbH reportedly won the tender issued by intermediary Powertrans.
 
Baghdad and Arbil are in a long-running dispute over oil operations.
 
In January, Iraqi Oil Minister Abdul Kareem Luaibi said the ministry intended to take legal action against Anglo-Turkish Genel Energy and other companies for the export of crude from the semi-autonomous region.
 
The oil firm intends to pump oil by pipeline from its fields in the Kurdistan region by 2014.
 
Iraq largely depends on oil revenues to support most state expenditures.
 
It has proven reserves of 143.1 billion barrels of crude oil and 3.2 trillion cubic meters (111.9 trillion cubic feet) of natural gas.