Inviting KRG and foreign oil companies
Federal Oil Ministry calls for meeting to resume Kurdistan oil exports
BAGHDAD — The federal Ministry of Oil on Tuesday urged the Kurdistan Regional Government (KRG) and international oil companies (IOCs) to meet in Baghdad to discuss resuming Kurdish oil production and exports through the Turkish port of Ceyhan.
The ministry said in a statement obtained by 964media that it wanted the meeting to be held “as soon as possible to discuss the issue and reach an agreement to expedite the resumption of production and the export” of KRG oil.
It is unclear what prompted the ministry’s invitation. However, on May 26, the Association of the Petroleum Industry of Kurdistan (APIKUR) called for a tripartite meeting between Iraqi and Kurdish authorities and IOCs “to find a mutually beneficial solution to restore oil exports through the Iraq-Turkey pipeline.” APIKUR estimates that Iraq has sustained $16 billion in losses due to the halt of Kurdistan’s oil exports via Turkey since March 2023.
In 2023, the International Chamber of Commerce’s International Court of Arbitration ruled that KRG’s oil exports via Turkey were illegal, leading Ankara to halt the exports. The KRG and IOCs blame the Iraqi government for the delay in resuming exports, while Baghdad initially blamed Ankara for not operating the pipeline. Since October 2023, Turkey has declared its pipeline ready, but Baghdad now cites high production fees demanded by IOCs as the main obstacle, seeking to lower these fees.
The Iraqi government insists on paying foreign oil companies in Kurdistan approximately $6 per barrel for extracted oil, while the companies demand around $20 per barrel.
During a visit to Iraq in mid-May, U.S. Assistant Secretary of State for Energy Resources Geoffrey Pyatt highlighted the importance of resuming Kurdistan’s oil exports, stating that the suspension had “resulted in significant economic loss for Iraq in general.”
KRG holds meeting with oil companies
