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Iraq Faces OPEC Lawsuit Threat Over Kurdish Oil Smuggling Allegations

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Concerns Over Potential Legal Action by OPEC Against Iraq for Oil Smuggling

A prominent member of the Parliamentary Oil and Gas Committee has expressed significant concerns regarding the likelihood of OPEC initiating legal action against Iraq due to oil smuggling activities originating from the Kurdistan region. Committee member Dogham Al-Maliki emphasized the need for the Ministry of Oil to adopt a more rigorous approach in managing the region’s oil resources. He stated, “The Ministry of Oil should have taken more decisive action concerning the oil from the Kurdistan region to ensure the protection of the country’s resources.”

Al-Maliki further critiqued the ministry, noting its failure to effectively control oil exports from the Kurdistan region, particularly regarding issues of smuggling and the integrity of export processes. Reports indicate that Kurdish oil smuggling operations have persisted, reportedly facilitated by external entities at a staggering rate exceeding 300,000 barrels per day. In response to these issues, Washington has threatened to impose sanctions on the Iraqi oil marketing company, SOMO, unless Baghdad turns a blind eye to these activities.

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