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OIL AND GAS
Some Chinese workers evacuated in northern Iraq: reports
by Staff Writers
Beijing (AFP) June 27, 2014


Kurdish government tells Baghdad to back off on oil sales
Erbil, Iraq (UPI) Jun 27, 2013 - The federal government in Baghdad should give up its effort to prevent oil exports from the Kurdish region of Iraq, the semiautonomous government said Friday.

The Kurdish Ministry of Natural Resources said a federal court ruled against the government in a case filed from Baghdad against Kurdish oil exports from Turkey.

The court, the ministry said, ruled Baghdad's efforts to prevent Kurdish oil exports lacked legal justification.

"Now we call upon the federal Oil Ministry, State Organization for Marketing of Oil and all their helpers to abandon their illegal and unconstitutional interventions to prevent oil exports from the Kurdistan Region," the ministry said Friday.

The federal Oil Ministry issued a statement Monday denouncing the sale of Kurdish oil to Israel. It said such exports were illegal unless the Kurdish government had explicit approval from the ministry and the federal government.

The U.S. government backed Baghdad's position earlier this week. U.S. State Department spokeswoman Marie Harf said any oil export or sale "has to happen with the appropriate approval of the federal Iraqi government."

The Kurdish government has sent two shipments of oil from the Turkish sea port of Ceyhan so far this year.

Dozens of Chinese workers have been relocated from strife-torn northern Iraq, state media said Friday, with an additional 1,200 set to depart in the coming days.

More than 50 China Machinery Engineering Corp (CMEC) workers arrived in Baghdad by helicopter from northern Iraq on Wednesday night, the state-run China Daily newspaper reported.

Another 1,200 trapped in the northern city of Samarra will arrive in Baghdad by bus "within three days", the report added.

Militants from the jihadist group the Islamic State of Iraq and the Levant (ISIL) have spearheaded a lightning offensive that has captured swathes of territory north and west of Baghdad this month.

China -- the largest foreign investor in Iraq's oil industry -- has more than 10,000 workers on a wide range of projects in the country, officials say, although most are in the south, far from the current fighting.

Even so, major Chinese oil firms have prepared evacuation plans in case the assault threatens their operations, highlighting the risks to energy supplies for the Asian giant.

Resources are a key interest for China, the world's second-largest economy, and Iraq is its fifth-largest source of crude oil imports.

At a regular briefing Thursday, a Chinese foreign ministry spokeswoman denied reports that efforts to evacuate some of the workers this week had failed.

The financial magazine Caixin reported that Iraqi troops had turned away buses of CMEC workers near Baghdad and forced them to return to Samarra.

"The Chinese embassy in Iraq is proceeding with the close cooperation with the Iraqi government and the army on a precise assessment of the security situation so as to guarantee a swift, secure and orderly evacuation of Chinese personnel," Chinese foreign ministry spokeswoman Hua Chunying said.

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