KRG relies on same shipowners as exports rise
Shipowners electing to lift KRG cargoes risk blacklisting by Iraq federal marketing firm Somo because of an ongoing dispute between Baghdad and Erbil over the terms of an export deal, leaving a limited pool of vessels available to the KRG.
The KRG continues to rely heavily — but not exclusively — on a pool of four shipowners to lift its crude, according to loading programmes. Only one new owner has emerged in recent months, lifting a single KRG cargo in August, a second cargo in September — even as exports rose by 31pc on the month to 620,500 b/d — and a third earlier this month. A sixth shipowner has already lifted one cargo this month, but it is too early to say if that is the beginning of a relationship with the KRG.
Vessel tracking data show a significant proportion of KRG crude exports are delivered to the Israeli port of Ashkelon, exposing shipowners to further risk of political backlash. Lifting KRG crude "can still cause headaches for owners after the deal", one broker said. KRG crude is also frequently moved on to destinations through ship-to-ship transfers.
The Tahiti, which lifted a 130,000t cargo at Ceyhan on 30 September, is currently headed towards the Turkish Straits for an unknown end-destination.
The KRG's relationship with Somo has been fraught in recent months, as Erbil and Baghdad continue to dispute the terms of a 550,000 b/d oil export deal.
Erbil and Baghdad reached the landmark crude export sharing deal back in December whereby the KRG committed to hand over 550,000 b/d crude from KRG-controlled and Kirkik fields to Somo at Ceyhan in return for 17pc of the federal budget. But the KRG — weary of Baghdad's shortfall in payments — began in June to prioritise independent exports and halted transfers of crude at Ceyhan to Somo.
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