Iraq is initiating talks with international oil firms and Kurdistan’s energy regulator to discuss restarting crude oil exports from the region after lengthy disputes over revenue and costs. A meeting is scheduled for March 4 in Baghdad to address contract issues and ensure alignment with international best practices. Apikur has expressed reluctance to resume exports immediately despite previous announcements, and various unresolved matters still remain a challenge.
Iraq has invited international oil companies and the Kurdistan region’s energy regulator to engage in discussions aimed at resuming crude exports from Kurdistan after a prolonged dispute over financial issues. The federal Oil Ministry has summoned the Association of the Petroleum Industry of Kurdistan (Apikur), which represents eight companies responsible for over 60% of Kurdistan’s oil production, to convene in Baghdad on March 4. The agenda includes addressing current contracts and ensuring compliance with international best practices for oilfield development while safeguarding national interests.
Despite an announcement from Baghdad that the resumption of oil exports was imminent, Apikur has stated that its members will not restart exports through Turkey’s Ceyhan port for the time being. The Oil Ministry plans for Iraq to directly export the region’s oil via the state-owned marketing firm Somo, beginning with an initial target of 185,000 barrels per day, which is set to increase progressively. Apikur representatives noted that, although they are aware of the March 4 meeting announcement, they have yet to receive official invitations.
A pipeline extending 970 kilometers transports Iraqi crude oil, predominantly from the Kirkuk region, to the exported terminals at Ceyhan. In March 2023, Turkey halted the daily flow of 450,000 barrels of Iraqi oil due to a court ruling favoring Baghdad, which indicated that Turkey violated a 1973 agreement by permitting the Kurdish administration’s autonomous pumping. Since that ruling, Baghdad and Kurdistan have struggled to resolve outstanding issues regarding export resumption, including agreements with oil firms and the payment structure for developers.
Negotiations have commenced in Erbil but have yet to yield an agreement. The federal government aims to restore exports without commitments to the Kurdish government regarding payments or clarity on the payment method. Kurdish officials have indicated that there may be delays in resuming exports, with no definitive date established yet for such resumption. Nevertheless, some observers believe that Kurdish oil exports to Ceyhan could restart soon, possibly within the first week of March.
Pressure from the Trump administration has reportedly influenced Iraq to permit the resumption of Kurdish oil exports or risk facing comparable sanctions to those imposed on Iran. Iraqi Oil Minister Hayan Abdul Ghani’s announcement last week regarding the potential resumption of exports was possibly reliant on increasing U.S. pressure. However, an adviser to Prime Minister Mohammed Shia Al Sudani has refuted claims of any sanctions threat, asserting that there had been no pressure from the U.S. in their recent dialogues. In a conversation between U.S. Secretary of State Marco Rubio and Prime Minister Al Sudani, emphasis was placed on Iraq’s energy independence and expeditious reopening of the Iraq-Turkey pipeline.
In summary, Iraq’s invitation to international oil companies and the Kurdistan energy regulator highlights the ongoing efforts to resolve disputes and resume oil exports from the region. Despite preliminary challenges, including delays in communication and unresolved financial terms, both parties are committed to negotiations aimed at restoring crude exports. Observers remain cautiously optimistic about potential resumption in early March amid external pressures from the U.S. government.
Original Source: www.thenationalnews.com
