Iraq's government persuaded a US judge in Texas to order the seizure of $100 million of oil inside a tanker anchored off Galveston that it claims was illegally pumped from wells in Kurdistan. Kurdish officials “misappropriated” more than 1 million barrels of oil from northern Iraq and exported them through a pipeline to the Turkish port of Ceyhan, according to a complaint filed in Houston federal court. Magistrate Judge Nancy Johnson in Galveston authorized US marshals to seize the cargo and have it moved ashore for safekeeping until the dispute is resolved. However, as the vessel remains outside US territorial waters, the order cannot be carried out. "Either they’ll bring the oil into port, where we'll take possession of it, or they'll sail off somewhere else," Phillip Dye Jr., Houston-based attorney for the Iraqi Oil Ministry, told Bloomberg, adding that his clients don’t know who bought the cargo. A State Department spokesman said last week that the government would warn potential buyers of oil from Iraqi Kurdistan the legal risks involved. (Bloomberg, WSJ, July 29)
Kurds win court order on tanker off Texas
Iraq's Kurdish regional government is now able to sell $100 million of crude oil after a US judge threw out a lawsuit filed by the Baghdad government against the sale. "Kurdistan’s unauthorized export of oil over land -– and later overseas –- may violate Iraqi law, but it does not violate U.S. maritime law,” said District Judge Gray Miller in Houston. (Rudaw)