In a statement released on Sunday, September 22, the Association of the Petroleum Industry of Kurdistan (APIKUR), which represents several international oil companies (IOCs) in the Kurdistan Region, called for continued tripartite talks to restore oil exports through the Iraq-Turkiye Pipeline (ITP).
“As world leaders gather in New York for the UN General Assembly, APIKUR member companies call for the Government of Iraq (GoI) to engage with the Kurdistan Regional Government (KRG), and IOCs to resolve outstanding issues and immediately restore exports through the ITP,” APIKUR said in the statement.
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“With $20 billion lost to all parties – including the people of Iraq – APIKUR member companies seek mutually beneficial solutions and prompt follow-through action from the GoI officials who have publicly stated that re-opening the ITP is a priority.”
On March 25, 2023, independent crude exports from the Kurdistan Region through Turkiye were stopped after an international arbitration in Paris ruled in favor of Baghdad against Ankara. Prior to the halt of exports, the Kurdistan Region sent 450,000 barrels per day of crude oil exports to international markets.
APIKUR calls for the immediate reopening of the Iraq-Türkiye Pipeline. $20B lost since March 2023—every day of delay hurts Iraq’s economy. We’re ready to work with all parties to make this happen soon. #OilandGas #UNGA2024 #iraq #kurdistan
— APIKUR (@apikur_oil) September 22, 2024
Our full statement here ⤵️…
APIKUR also welcomed recent comments by Iraqi Prime Minister Mohammed Shia’ al-Sudani to Bloomberg that the ITP could be opened by the end of 2024.
“APIKUR is encouraged by the Prime Minister’s statement and requests immediate tripartite meetings to reach mutually beneficial solutions to reopen the ITP,” APIKUR said.
“APIKUR member companies are prepared to resume exports, contingent upon reaching agreements that provide for payment surety for past and future exports, direct payment, and preservation of commercial and economic terms.”
“Should such agreements require modifications to existing contracts, APIKUR member companies are willing to consider this if agreed between the GoI, KRG, and individual IOCs.”
Moreover, APIKUR has backed public statements made by the KRG that direct sales agreements between IOCs and Iraq’s State Organization for Marketing of Oil offer the best option for resolving the current situation, as those agreements would provide the IOCs with surety for payment through upfront payment, escrow arrangements, or payments in-kind at Ceyhan Port.
Several previous discussions between the GoI, the KRG, IOCs, and Turkish officials have yet to result in a breakthrough.
