APIKUR: no deal yet to restart Kurdish oil exports via Iraq-Turkey Pipeline

BAGHDAD — The Association of the Petroleum Industry of Kurdistan said the April 20 meeting with officials from the Government of Iraq and the Kurdistan Regional Government “did not result in any agreement” to restart oil exports through the Iraq-Turkey Pipeline, a key route for Kurdish crude exports to international markets.

Representatives of APIKUR member companies and other international oil companies participated in the meeting to discuss restarting oil exports through the Iraq-turkey Pipeline.

“APIKUR member companies remain ready to immediately resume exports through ITP once binding agreements are in place that ensure payment certainty for such exports in line with each IOC’s existing contractual terms, and that resolve all outstanding payment arrears,” APIKUR said.

Pipeline exports have been suspended since March 2023 due to an arbitration ruling against Turkey’s facilitation of Kurdish oil exports without Baghdad’s consent. Before the shutdown, about 450,000 barrels per day were exported through the pipeline.

APIKUR emphasized that “the KRG’s contracts with IOCs have been deemed legal and valid by Iraq’s courts,” and that “any payment arrangements, including the scope of work for an international consultant must satisfy both Iraq’s Budget Law and the IOCs’ existing contracts.”

“Multiple solutions and recommendations have been proposed—publicly and privately—by a number of member companies of APIKUR to the GoI [Government of Iraq] and KRG,” the statement said. “The recommendations included a proposed scope of work for the international consultant that met the test of consistency with both Iraq’s budget law and IOC contracts. However, this has not yet been accepted.”

Article 12 of Iraq’s newly amended federal budget, passed Feb. 2, allocates $16 per barrel for production and transportation costs of foreign companies in the Kurdistan Region. APIKUR initially welcomed the amendment but insisted on formal agreements guaranteeing payment transparency and contractual protections before exports resume.

APIKUR said that although “the Governments have indicated willingness to consider options,” there had been “no substantive discussion of arrangements required to ensure payment has taken place.” It added, “no progress has been made on the issue of IOC payment arrears.”

“The GoI continues to publicly express the importance of oil exports through the ITP but engagements thus far have been limited and unproductive,” APIKUR said. It called for a “redoubling of efforts to find mutually beneficial solutions.”

“APIKUR member companies have repeatedly proposed solutions that satisfy, both, Iraq’s Budget Law and comply with international oil company contracts which have been validated in Iraq’s courts,” said Myles B. Caggins III, spokesman for the association. “We regret the lack of progress, nevertheless we will continue to push for a resumption of oil exports through the Iraq-Türkiye Pipeline.”

In early April, APIKUR reiterated calls for new binding agreements to restore Kurdish crude exports through the Iraq-Turkey Pipeline, citing a need for clear payment guarantees and collaboration on budget law implementation. Iraq’s Ministry of Oil, however, rejected the group’s statements as “misleading and inaccurate.”

Efforts to resolve the impasse have intensified in recent months. On Feb. 17, Minister Abdul Ghani announced an arrangement with the KRG to maintain exports above 300,000 barrels per day. Acting Kurdistan Region Natural Resources Minister Kamal Mohammed Saleh said “all obstacles have been resolved” and indicated exports could resume soon pending legal procedures, but exports have not yet restarted.