Iraq Commences Talks with Oil Firms for Resuming Kurdistan Crude Exports

Iraq has invited oil companies and Kurdistan’s energy regulator for talks on restarting oil exports halted by previous disputes. A meeting scheduled for March 4 in Baghdad aims to address contracts and regulatory frameworks. Despite announcements about resuming exports, uncertainties about timelines remain. Increased external pressures add complexity to the negotiations surrounding Kurdish oil exports.

Iraq has initiated discussions with international oil companies and the Kurdistan region’s energy regulator regarding the resumption of crude oil exports, halted due to a long-standing dispute over financial matters. The Oil Ministry has organized a meeting in Baghdad for March 4, inviting the Association of the Petroleum Industry of Kurdistan (Apikur) and the Kurdistan regional government’s Ministry of Natural Resources to address existing contracts and align future agreements with international standards. Despite previous announcements about resuming exports, Apikur indicated that companies would not export oil through Turkey’s Ceyhan port until receiving formal communication regarding the Baghdad meeting.

The Iraqi Oil Ministry announced plans for the state-run oil marketing company Somo to manage the region’s oil exports starting at 185,000 barrels per day, to be increased gradually. However, Apikur reported receiving no official invitation, pending the necessary communication from the Ministry. “Companies are awaiting their official invitation letter,” stated Myles Caggins, a representative for Apikur. The pipeline transporting oil from the Kurdistan region to Turkey has remained inoperative since March 2023, following a ruling favoring Baghdad that limited Kurdish oil exports without federal consent.

Negotiations in Erbil have not yielded satisfactory outcomes, with unresolved issues surrounding payments and contractual agreements. Kurdish officials indicated that the timeline for resuming oil exports is uncertain, with no specific date confirmed for when exports might resume. However, some sources close to the negotiation process suggest that Kurdish oil exports could potentially restart soon, possibly within the first week of March 2024.

Reports indicated increased pressure from the Trump administration on Iraq to allow Kurdish oil exports to resume or risk sanctions similar to those imposed on Iran. This pressure was thought to motivate Iraqi Oil Minister Hayan Abdul Ghani’s recent commitment to restart exports. However, an advisor to Prime Minister Mohammed Shia Al Sudani denied any reports of sanctions, emphasizing the focus on Iraq’s energy independence and rapid reopening of the pipeline with Turkey.

In summary, Iraq plans to restore crude oil exports from the Kurdistan region after prolonged disputes over revenue sharing. Meetings are scheduled for early March to resolve contractual and regulatory issues. Although discussions are ongoing, uncertainties remain regarding the exact timeline for resumption, with external pressures from the U.S. government further complicating negotiations. The situation continues to develop as all parties seek a resolution beneficial to Iraq’s overall oil production strategy.

Original Source: www.thenationalnews.com