US Refineries Cease Purchase of Kurdish Oil

Posted By Gabby DelGatto
Tuesday, August 12, 2014

U.S. refiners will refrain from buying Kurdish crude oil until a long-running dispute between Baghdad and Iraqi Kurdistan is settled, while Washington urges both sides to set aside their differences and helps them tackle Sunni militants.

The two known U.S. buyers of Kurdish crude oil have now rejected delivery of cargoes from tankers near New Jersey and Texas, saying they will not make further purchases until it is determined who has the right to sell the oil: the central government of Iraq or the Kurdistan Regional Government (KRG).

U.S. refiner Axeon Specialty Products was the latest company to turn away a cargo of Kurdish crude oil on Monday. It balked after Baghdad filed a lawsuit over a cargo slated for another U.S. refiner, LyondellBasell NV.

"In light of the dispute over the rights to sell crude oil originating from the Kurdish region of Iraq, Axeon will not purchase or accept delivery of any of the affected crude oil until the matter is appropriately resolved," the company said.

Now the tankers, the Minerva Joy and the United Kalavrvta, are stuck in limbo, anchored in U.S. coastal waters as they wait out the controversy, Reuters ship tracking data shows.

Washington, which has been pushing both sides to reach a deal over oil sales since the start of the year, has stopped short of banning U.S. companies from buying Kurdish crude but warned they may face legal tangles with Baghdad.

The impasse over oil sales has become symbolic of the future of Iraq. While the KRG needs revenues to fund its fighters and tackle a growing refugee crisis, Baghdad fears independent oil sales will finance a breakaway Kurdish state.

The United States has urged unity and last week launched air strikes against Islamic State militants who have seized a third of the country and defied Baghdad and the Kurds.

The White House on Tuesday said Iraqi Kurdish President Masoud Barzani had pledged to work with Iraq's new leader, Haider al-Abadi, who is due to replace Prime Minister Nuri al-Maliki. Abadi called on politicians to end crippling feuds.

But analysts said a deal over oil would be difficult to reach.

"Until the legal dispute is resolved it seems unlikely the Kurds will be able to find U.S. buyers willing to take cargoes," said Richard Mallinson at Energy Aspects in London.

"It is not yet clear that the KRG and a new federal government will be able to set aside their disagreements and reach a deal over Kurdish oil exports any time soon."

In total, almost $140 million worth of Kurdish oil sales have been blocked off the U.S. coast since July. A tanker carrying another $100 million of Kurdish crude has been stuck off Morocco for more than two months.

Before the latest chapter of the dispute, at least five cargoes of Kurdish crude were delivered on U.S. soil this year, all of them going to ports in Houston and Paulsboro used by LyondellBasell and Axeon.

(Additional reporting by Marianna Parraga; Editing by Tom Brown)
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Defense Appropriations Bill Includes $1 Bln for US Icebreaker

The U.S. Senate Appropriations Committee’s FY2017 Defense Appropriations Bill has included $1 billion in funding to accelerate construction of a new polar icebreaker for the U.

Higher Capesize Demand Pushes up Baltic Index

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Friday buoyed by higher demand for capesize vessels.

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

Energy

Hercules Offshore Filing for Bankruptcy Again

Hercules Offshore Inc said it planned to file for prepackaged Chapter 11 bankruptcy, just six months after the rig contractor emerged from bankruptcy protection.

Strike Idles 38 Oil Tankers at Fos-Lavera

Some 38 oil tankers have been held up at the Fos-Lavera oil port in southern France, the country's biggest, including 25 at harbour, up from 12 the previous day,

Höegh LNG Turns to Profit in 1Q

Höegh LNG returned to profit following a Profit after tax of USD 6.3 million for the first quarter of 2016, up from USD 4.0 million net loss in the fourth quarter 2015.

News

US Hospital Ship Aids South Korean Sailor

A U.S. hospital ship conducted a medical evacuation, or “medevac”, May 27 to assist an ailing Republic of Korea sailor aboard a Republic of Korea Navy (ROK-N) submarine.

Details El Faro's Sinking Emerge from US Probe

U.S. investigators on Friday concluded two weeks of hearings into the sinking of cargo ship El Faro in a hurricane last fall that included reports the vessel had

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

Government Update

Details El Faro's Sinking Emerge from US Probe

U.S. investigators on Friday concluded two weeks of hearings into the sinking of cargo ship El Faro in a hurricane last fall that included reports the vessel had

Defense Appropriations Bill Includes $1 Bln for US Icebreaker

The U.S. Senate Appropriations Committee’s FY2017 Defense Appropriations Bill has included $1 billion in funding to accelerate construction of a new polar icebreaker for the U.

DSC Dredge Receives President’s E-Star Award

DSC Dredge, LLC, based in Reserve, La., has received the 2016 President’s “E-Star” Award for exports.   In a ceremony held on May 16, 2016, at the U.S. Department

Logistics

Higher Capesize Demand Pushes up Baltic Index

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Friday buoyed by higher demand for capesize vessels.

DSC Dredge Receives President’s E-Star Award

DSC Dredge, LLC, based in Reserve, La., has received the 2016 President’s “E-Star” Award for exports.   In a ceremony held on May 16, 2016, at the U.S. Department

Portugal PM Warns Lisbon Dock Workers to End Strike

Portugal's prime minister warned Lisbon dock workers on Friday that his patience was running out after a strike that has lasted a month, paralysing the city's ports.

Middle East

EGAS: Egypt to tender for 10 LNG Cargoes

Egypt will tender next week to import 10 cargoes of liquefied natural gas (LNG) for delivery in July and August, an official from the state gas company, EGAS, said on Thursday.

Danelec Bags Multiple VDR Orders in Middle East

Danelec Marine, along with distribution partner Elcome International, is to supply Danelec DM100 Voyage Data Recorders (VDRs) for 14 ships in the Middle East.   The

Maritime Turkey Set for a Tailwind

Turkey is strategically located, straddling both Europe and Asia with substantial number of Black Sea and Mediterranean Sea ports, thus making maritime trade and

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Port Authority Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1119 sec (9 req/sec)