Iraq’s Ministry of Oil on May 28 invited the Kurdistan Regional Government (KRG) Ministry of Natural Resources and international oil companies (IOCs) to a meeting in Baghdad to find a solution to restart production from the Kurdistan Region.
On March 25, 2023, independent crude oil exports from the Kurdistan Region to Turkey were halted following an international arbitration ruling in Paris. The decision favored Baghdad over Ankara, resulting in the cessation of 450,000 barrels per day of crude oil exports.
“The Ministry of Oil called on the KRG Ministry of Natural Resources and IOCs operating the fields located in the Kurdistan Region to hold a meeting in Baghdad as soon as possible for the purpose of reaching an agreement to accelerate the restart of production and resume the export of oil through the Turkish port of Ceyhan,” Iraq’s Ministry of Oil stated.
Read More: APIKUR Urges Dialogue on Oil Exports
The Association of the Petroleum Industry of Kurdistan (APIKUR), which represents the majority of IOCs in the Kurdistan Region, in a post on X on May 27 said that they believe tripartite discussions between the federal government of Iraq, the KRG, and IOCs are required to find a mutually beneficial solution to restore oil exports through the Iraq-Turkiye pipeline (ITP).
“Today, we acknowledge the swift, public response from Iraq’s Ministry of Oil and look forward to scheduling joint discussions to restore oil exports through the ITP,” APIKUR wrote in a post on X on May 28.
?Yesterday, @apikur_oil called for tripartite meetings with Government of Iraq and Kurdistan Regional Government officials.
— APIKUR (@apikur_oil) May 28, 2024
Today, we acknowledge the swift, public response from Iraq’s Ministry of Oil and look forward to scheduling joint discussions to restore oil exports…
“The positions of the KRG and the federal government have aligned somewhat, but the main issues in relation to revenue sharing and budget are far from resolved. The stakeholders have yet to agree on a way forward,” Managing Director of Carduchi Consulting Shwan Zulal told Kurdistan Chronicle.
“This includes the oil contracts and profit sharing on one hand, and the pipeline ownership and tariffs on the other. The new engagement from the federal Ministry of Oil is a positive sign, but unless the fundamental issues are addressed, the flows are unlikely to restart soon.”
“The public invitation from Iraq’s Ministry of Oil to the KRG and IOCs for meetings to restore oil exports through the ITP is a positive sign; however, APIKUR member companies still await official invitations and look forward to reviewing the proposed agenda,” APIKUR Spokesperson Myles B. Caggins III told Kurdistan Chronicle.
