Trafigura Banned from Iraq After Kurdish Oil Deal

Source: Reuters 12/12/2012, Location: Middle East

Iraq has blacklisted Trafigura from participating in Iraq's oil products tenders after the Swiss trading house bought Kurdish origin light oil, Iraqi oil sources said, pointing to the perils of doing business with both Arbil and Baghdad.

Baghdad is at loggerheads with Kurdistan over oil exports from the semi-autonomous region and insists that the central government has the sole right to export oil.

Kurdistan began exporting its own oil in October through independent deals and Geneva's Trafigura bought its first cargo of Kurdish light oil, known as condensate.

Trafigura declined to comment. Shippers said the firm planned to load another cargo of Kurdish condensate at the start of this week.

Geneva's Trafigura was one of the largest suppliers of gasoline into Iraq and this year was sending as much as 60,000 tonnes a month, worth around $50 million at current prices, trade sources said.

The ban will not impact crude contracts as Trafigura, like most trading houses, is not entitled to buy crude oil from Iraq as the State Oil Marketing Organization (SOMO) deals only with end-users.

Top oil trader Vitol - one of Trafigura's main rivals - also purchased Kurdish oil exported via Turkey without Baghdad's permission but appears to have since made amends with Iraq.

Iraq's oil minister Abdul-Kareem Luaibi said on Sunday that Vitol had apologized to the Iraqi government for buying Kurdish oil that was exported via Turkey without Baghdad's permission.

Vitol was on the list of winners for both gasoil and gasoline to SOMO in 2013, trade sources said.

Years of war, militant attacks and under-investment means that OPEC member Iraq relies on imports for its fuel needs, making it one of the biggest buyers of products in the region.

Luaibi added this week that there would be a meeting about another company LUKOIL, which also bought condensate of Kurdish origin via Turkey.


United States >>  6/29/2022 - PDC Energy, Inc. announced that the Colorado Oil and Gas Conservation Commission (“COGCC”) approved the Company’s Broe Oil & Gas Development Plan (“OG...
Trinidad and Tobago >>  6/27/2022 - Onshore Trinidad's Ortoire block is where Touchstone Exploration Inc. ("Touchstone" ) (TXP) provides an update on operational progress. The Ortoire bl...

United Kingdom >>  6/23/2022 - Highlights:
• Anning and Somerville gas field development classified as Reserves following an independent Technical and Commercial Audit conducte...

Morocco >>  6/22/2022 - Chariot (CHAR), the Africa focused transitional energy company, announces its audited final results for the year ended 31 December 2021. ...

United Kingdom >>  6/21/2022 - Union Jack Oil, a conventional onshore hydrocarbon production, development, and exploration business based in the United Kingdom, has released details...
Canada >>  6/16/2022 - - 2022 guidance increased to an average production range of 31,500 to 32,500 boe/d based on expanded capital development program
- Second half 2...


Related Categories: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  Food Supplies  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Unskilled Labors  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 

Related Articles: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.