Kurdistan Region oil companies ready to resume exports, says APIKUR

BAGHDAD — The Association of the Petroleum Industry of Kurdistan says it is ready to resume oil exports through the Iraq-Turkey Pipeline, as long as any new deal upholds what it calls “existing contractual, commercial, and economic terms” for its member companies.

In a statement issued Saturday, the group stressed the need for written sales and lifting accords with both the federal government and the Kurdistan Regional Government. “We seek written sales and lifting agreements, with the Government of Iraq and Kurdistan Regional Government, that provide payment transparency and surety without political interference,” the statement said.

APIKUR also endorsed recent remarks by Iraqi Prime Minister Mohammed Shia’ Al Sudani, who urged the swift resumption of exports in a Feb. 22 meeting with Kurdistan Region President Nechirvan Barzani. APIKUR echoed his view that restarting flows will “strengthen Iraq’s economy, and meet the needs of its citizens.” Exports have been halted since March 2023 following legal disputes and an arbitration ruling against Turkey for allowing Kurdistan Region shipments without Baghdad’s consent.

Iraq’s Federal Ministry of Oil said Saturday it is finalizing procedures to restart shipments via the Ceyhan terminal “in accordance with the provisions outlined in the Federal Budget Law and its amendments,” and called on the Kurdistan Region to send oil from operational fields to the State Organization for Marketing of Oil.

In response, the Kurdistan Regional Government’s negotiating delegation said it stands ready to comply with the budget law, which mandates federal-level marketing. However, the delegation insisted on certain prerequisites before exports resume. “During our joint meeting with the delegation from the Federal Ministry of Oil on February 18, 2025, in Erbil, it was confirmed that implementing the law requires agreeing on the quantities allocated for local consumption based on the region’s actual needs and commitments, similar to other parts of Iraq,” the group stated.

The delegation noted that approval from the Iraqi prime minister is needed for some details and underscored the importance of a clear payment mechanism for production and transportation. “The federal side clarified that this issue is linked to the Ministry of Finance and requires further discussion,” it said.

Before the shutdown, about 450,000 barrels per day moved through the pipeline, with experts estimating more than $20 billion in cumulative losses. On Feb. 2, 2025, lawmakers passed a federal budget containing Article 12, which directs the Ministry of Finance to allocate $16 per barrel to cover production and transportation costs for foreign oil companies in the region.

Iraqi Oil Minister Hayyan Abdul Ghani announced on Feb. 17 that officials had reached a pact with the Kurdistan Regional Government to restart exports, ensuring daily flows do not drop below 300,000 barrels. “We have agreed with our counterparts …,” he told reporters in Baghdad. Kamal Mohammed Saleh, the acting natural resources minister in the Kurdistan Region, soon after declared “all obstacles have been resolved,” adding that shipments could restart “sooner since all legal procedures have been completed.”