MESOP LATEST : Iraq threatens legal action against any buyer of Kurdistan oil

June 1, 2014-  Reuter – BAGHDAD,— Iraq threatened on Sunday to take legal action against any buyer of oil exported via a new independent pipeline from the autonomous Kurdistan region to Turkey.The Iraqi Ministry of Oil warned on Sunday the global markets and companies from buying a load of “the United Leadership” loaded with crude oil extracted from fields of Kurdistan region.

The first cargo of piped oil from Kurdistan left Turkish shores 10 days ago aboard the United Leadership tanker, despite objections from Baghdad, which has since filed for international arbitration against Ankara for facilitating the sale. Iraq says its State Oil Marketing Organisation (SOMO) has exclusive rights to manage sales of crude from all the country, including Kurdistan. “SOMO, on behalf of the Iraqi federal ministry of oil, is hereby warning all companies, individuals and bodies from buying the Iraqi crude oil cargo that is loaded on the vessel (United Leadership),” SOMO said in a statement signed by General Director Majid Alhilfi.

“The Iraqi federal ministry of oil and SOMO … shall reserve the right to take all legal measures against any company, individual and/or body that bought or might consider buying the said cargo,” it added.

After leaving Turkey’s Ceyhan port, the United Leadership sailed through the Mediterranean and appeared to be heading in the direction of the United States, but on Friday reversed course, ship tracking data showed.

Some sources in the market and others that monitor the movement of ships have said that the United Leadership tanker sailed in the direction of the U.S. coast on the Gulf of Mexico since loading it from the Turkish port of Ceyhan last week . Kurdistan Regional Government confirmed that crude will go to Europe in response to a question about the ship going to the United States and whether this shipment is “the first of several similar deals.” The Prime Minister of the Kurdistan region, Nechirvan Barzani, stated in a press conference Friday, “The Kurdistan region has respected the Iraqi constitution, and we do not have any secret plans to sell oil…we continue to sell Kurdistan region’s oil, currently 100 thousand barrels per day”. He added that by the end of 2014, sales will be increased to reach between 450-500 thousand oil barrels.