SK Energy Continues Talks with Iraqi Government to Resume Oil Imports

Strategic Insights -

SK Energy, a top South Korean refiner, remains in negotiations with the Iraqi government to resume oil imports after a one-year suspension. The ban on SK Energy's crude exports was imposed by Iraq's central government in January 2022 in retaliation for signing a deal with the autonomous government of Iraqi Kurdistan to tap an oil field without permission. SK Energy imported 50,000 barrels of oil per day from Iraq, which accounted for 5% of its daily oil imports, before the ban.

Key Takeaways:

  • SK Energy is still in talks with the Iraqi government to resume oil imports after a one-year suspension.
  • The ban on SK Energy's crude exports was imposed by Iraq's central government in January 2022.
  • SK Energy imported 50,000 barrels of oil per day from Iraq, which accounted for 5% of its daily oil imports before the ban.
  • The deal between SK Energy and the autonomous government of Iraqi Kurdistan was signed without the permission of Iraq's central government.
  • SK Energy belongs to a South Korean consortium led by the state-run Korea National Oil Corp. (KNOC).
  • KNOC is unwilling to comment on whether SK Energy might withdraw from the consortium.
  • No progress in talks has been reported by the Iraqi embassy in South Korea.

Statistics:

  • SK Energy imported 50,000 barrels of oil per day from Iraq before the ban, accounting for 5% of its daily oil imports.
  • The ban on SK Energy's crude exports was imposed by Iraq's central government in January 2022.

Sources:

  • Asia Pulse
  • Yonhap