“The issue of restarting oil exports from the Kurdistan Region is tied to the interests of the people,” Iraqi oil ministry spokesperson Abdulsahib al-Hasnawi told Rudaw, adding that both Baghdad and Erbil are “rushing” to resume exports and that “they need to do so.”
Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023 after a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin exporting oil independently in 2014.
Despite ongoing talks between Erbil, Baghdad, Ankara, and oil producers - with added pressure from the United States - the exports remain stalled, with their suspension costing Iraq billions of dollars in revenue.
“Certainly, meetings to resume oil exports will take place in the coming days, and they will be productive,” Hasnawi affirmed, emphasizing that there are “no major disagreements” between Erbil and Baghdad regarding their resumption.
Only “a few specific points to reorganize the exports” remain, according to Hasnawi - points he expects to be resolved “soon.”
In late March, the Association of the Petroleum Industry of Kurdistan (APIKUR), a coalition of eight international oil companies operating in the Kurdistan Region, accused the Iraqi government of being "unwilling" to negotiate a solution that honors their contracts with Erbil, claiming Baghdad was instead attempting to unilaterally alter the terms.
APIKUR shared another statement on Thursday, saying that their investments have been “fundamentally harmed” by the closure of the pipeline and that they are in a “hurry” to resume the oil exports - for which they have been “at forefront to push negotiations with Baghdad.”
“Investments will continue when the ITP reopens and IOCs [international oil companies] are ensured of their contractual rights,” their statement read.
In response, Baghdad’s oil ministry on Friday said it “regrets the publication of this erroneous and misleading statement.”
It also called for an “urgent meeting with the parties concerned” to negotiate the resumption of the exports “in accordance with the modified budget law” as well as to reach an agreement that “protects Iraq’s rights and guarantees its commitments to investors.”
The ministry further stated that the “primary challenge” to negotiations stems from “non-constructive steps” and “unrealistic demands” made by other parties operating outside the existing legal framework.
In early February, the Iraqi parliament approved amendments to the federal budget law, authorizing a $16-per-barrel fee for production and transport costs in the Kurdistan Region - a move seen as a crucial step toward restarting exports.
The amendments also require both the federal government and the KRG to establish an international technical consultancy within 60 days to assess production and transportation costs for oil fields in the Kurdistan Region. If an agreement cannot be reached, the federal council of ministers will appoint the consultancy.
