Iraqi oil ministry invites Kurdistan Region oil companies to talks in Baghdad

BAGHDAD — Iraq’s federal Ministry of Oil on Tuesday invited international oil companies and officials from the Kurdistan Regional Government’s Ministry of Natural Resources to a meeting in Baghdad. The meeting follows refusals by oil companies to resume Kurdistan Region exports without a formal guarantee of payment.

A ministry statement on Saturday said the agency invited APIKUR-affiliated global companies that have contracts with the KRG to develop the region’s oil fields. It added that KRG representatives were asked to address contract issues and negotiate agreements that support oil field development “in a manner that serves the national interest.”

At Khor Al-Zubair port yesterday, Iraqi Oil Minister Hayyan Abdul Ghani said Iraq plans to resume Kurdistan Region oil exports through SOMO via Turkey’s Ceyhan port “within next hours.” Exports would start at 185,000 barrels per day and gradually increase to meet federal budget quotas.

However, APIKUR has rejected restarting exports without a formal payment guarantee. In a statement published on X, the group said, “As has been repeatedly made clear, APIKUR member companies remain prepared to immediately resume exports as soon as formal agreements are reached to provide surety of payment for past and future exports consistent with our existing contractual legal and commercial terms. There has not yet been any outreach in this regard to APIKUR member companies.” It added, “APIKUR member companies do not have agreements that would lead to resuming oil exports today.”

On Feb. 25, U.S. Secretary of State Marco Rubio called Iraqi Prime Minister Mohammed Shia al-Sudani, urging that Iraq “quickly reopen the Iraq-Türkiye Pipeline,” according to State Department spokesperson Tammy Bruce.

The latest developments come after the KRG announced on Feb. 23 that it had reached an accord with Baghdad to restart exports “based on available capacity.” The deal called for a joint technical team to inspect export pipelines and confirm operational readiness and reaffirmed the KRG’s commitment to the Federal General Budget Law governing oil exports.

Before the March 2023 shutdown, the Iraq-Turkey Pipeline transported 450,000 barrels per day. The stoppage—triggered by an arbitration ruling against Turkey for allowing Kurdish oil exports without Baghdad’s consent—has cost Iraq an estimated $20 billion in revenue.

Efforts to resolve the impasse have intensified in recent weeks. On Feb. 17, 2025, Minister Abdul Ghani announced a new arrangement with the KRG aimed at keeping exports from falling below 300,000 barrels per day. Acting Kurdistan Region Natural Resources Minister Kamal Mohammed Saleh said “all obstacles have been resolved” and indicated that exports could resume soon, pending legal procedures.

Iraq’s newly amended federal budget, passed on Feb. 2, 2025, includes Article 12, which allocates $16 per barrel to cover production and transportation costs for foreign oil companies operating in the Kurdistan Region. APIKUR welcomed the amendment but insists that formal agreements ensuring payment transparency and protection of contractual terms be finalized before exports resume.