Iraq has invited international oil companies and Kurdistan’s energy regulator to discuss the resumption of crude oil exports following disputes over revenue sharing. A meeting is set for March 4 to address contract issues and align practices with international standards. Complications persist from a previous 2023 ruling that halted significant exports, but negotiations are ongoing with indications that exports may resume soon, influenced by U.S. pressure.
Iraq has invited international oil companies and the Kurdistan region’s energy regulator to discussions aimed at reinstating crude oil exports from Kurdistan, following prolonged disputes over revenue sharing. The Federal Oil Ministry scheduled a meeting for March 4 in Baghdad with the Association of the Petroleum Industry of Kurdistan (Apikur), a coalition of companies producing over 60 percent of the region’s oil, to review existing contracts and establish agreements in line with international standards and national interests.
On the eve of the planned meeting, Apikur indicated that members were not ready to resume oil exports via Turkey’s Ceyhan port, despite previous announcements from Baghdad signaling an imminent restart. The Oil Ministry stated that Iraq intends to export Kurdistan’s oil directly through the state-run oil marketing company, Somo, beginning at an initial rate of 185,000 barrels per day, with plans for gradual increases. Apikur representatives noted they had not received an official invitation to the March 4 meeting yet, despite acknowledging the announcement made.
The discussions arise amid complications stemming from a 2023 arbitration ruling that halted approximately 450,000 barrels of Iraqi oil exports daily from Ceyhan, primarily impacting 370,000 barrels from the Kurdistan region. The ruling stated that Turkey had violated a 1973 agreement by permitting Kurdish authorities to export oil without Baghdad’s consent. Since this issue arose, parties have been unable to reach a consensus on the resumption of exports, payment systems, and other operational processes.
Past negotiations in Erbil did not yield an agreement, as the federal government preferred to restart exports without guaranteeing payments or establishing clear mechanisms. While Kurdish officials expressed uncertainty regarding timelines, some sources indicated that oil exports might resume soon, potentially in early March. Reports suggested that U.S. administration pressure could be influential in the negotiations, compelling Iraq to take steps towards resuming Kurdish oil exports. However, Iraq’s Prime Minister’s advisor denied any claims of threats or external pressures influencing negotiations, emphasizing direct talks on energy independence.
In summary, Iraq’s initiative to resume oil exports from Kurdistan reflects ongoing negotiations aimed at resolving long-standing disputes over revenue distribution and operational agreements. While initial steps have been taken towards future oil exports, the situation remains fluid, with both Kurdish officials and negotiation dynamics influencing the timeline for resumption. Continued discussions among stakeholders, along with external influences, will be critical in determining the future of oil exports from the region.
Original Source: www.thenationalnews.com
