Tanker cancellations going up at Ceyhan
Ceyhan tanker cancellations climb as Kurdish oil sales grow
LONDON, July 6, 2015
Oil firms BP and Eni have cancelled more tanker loadings from the Turkish port of Ceyhan due to a lack of oil in tanks owned by Iraqi state oil firm Somo after Iraq's semi-autonomous region of Kurdistan ramped up independent oil sales.
Shipping data showed the latest tanker cancellations included Eni's Seanostrum, Socar's Oklahoma, China Oil's Baltic Galaxy, Saras's Baku, Repsol's Afra Laurel and BP's SKS Satilla.
Together they were due to lift more than 4 million barrels of Iraqi Kirkuk crude at the end of June.
The latest cancellations bring the number of cargoes which failed to load Kirkuk crude in June to 12.
Kurdistan has ramped up independent oil sales since mid-June while cutting allocations to Somo in an escalating dispute over export rights and budget payments.
Kurdistan has sold at least 12 million barrels of oil from Ceyhan since mid-June, according to shipping data and traders, compared to 5 million barrels it allocated to Somo in early June after which transfers largely stopped.
Kurdistan says it is still committed to a December deal with Baghdad under which it agreed to transfer up to 550,000 barrels per day to Somo in exchange for Baghdad allocating Arbil 17 per cent of the country's budget payments.
But Arbil says Iraq has failed to stick to the deal and pay up while Kurdistan's needs for money are especially acute given the fight against Islamic State militants and the sheltering of a large number of refugees from Syria and Iraq. --Reuters
