ERBIL, Kurdistan Region - Iraqi Oil Minister Hayyan Abdul Ghani said on Wednesday that a delegation from the Kurdistan Region’s natural resources ministry is set to visit Baghdad on Saturday to hold another meeting with his ministry regarding the restart of the Kurdish oil exports. “There will be a delegation from the [KRG’s] natural resources ministry in Baghdad on Saturday to complete the negotiation process, and God willing, we all have hope to reach an agreement,” Abdul Ghani said at the Sulaimani Forum. Oil exports from the Kurdistan Region through the pipeline have been halted since March 2023, when a Paris-based arbitration court ruled that Ankara had violated a 1973 agreement by allowing the Kurdistan Regional Government (KRG) to export oil independently. Despite months of talks involving Erbil, Baghdad, Ankara, and oil producers - under pressure from the United States - exports remain suspended, costing Iraq billions in lost revenue. "The discussions were able to achieve the required goal, which is amending the law," Ghani said at the Sulaimani Forum, referring to provisions ensuring international oil companies (IOCs) in the Kurdistan Region receive sufficient compensation for oil production. Last week, the oil ministry said no major obstacles remain to restarting exports and that only minor technical issues need to be resolved between Erbil and Baghdad. In March, the Association of the Petroleum Industry of Kurdistan (APIKUR), which represents eight IOCs, accused Baghdad of refusing to honor existing contracts with Erbil. The oil ministry responded last Friday, calling APIKUR’s statement “erroneous and misleading.” At the forum, Ghani said that oil production in the Kurdistan Region faces unique challenges. "The oilfields in the Kurdistan Region are difficult due to the topography of the area," he said, adding that Iraq, with a relatively more forgiving geography for oil extraction, “has oilfields that cost more than $20 per barrel to produce.” In February, the Iraqi parliament approved budget amendments allowing a $16-per-barrel payment to cover production and transportation costs in the Kurdistan Region. The amendments also require Erbil and Baghdad to establish an international technical consultancy to verify those costs within 60 days. If no agreement is reached, the federal cabinet will appoint the consultancy. The oil minister said two or three technical meetings have been held with KRG officials to ensure IOCs receive guarantees for their costs. Ghani reiterated Iraq’s commitment to the Organization of the Petroleum Exporting Countries (OPEC), dismissing any speculation of a withdrawal. "We are completely committed to OPEC," he said, noting that the Kurdistan Region's oil output is subtracted from Iraq's OPEC quota. Iraq’s oil production was 3.9 million barrels per day in January, in line with OPEC+ quotas. Baghdad aims to boost output capacity to more than 6 million barrels per day by 2029, according to Oil Ministry Undersecretary Mohammed Khudair. Before the suspension, Erbil exported around 400,000 barrels per day through the Iraq-Turkey pipeline, including 75,000 barrels from Kirkuk. In February, Khudair said the Kurdistan Region can currently export about 185,000 barrels per day, with the rest reserved for domestic use. Ghani said Iraq is also seeking to increase its OPEC quota and plans to invite major US oil companies, including ExxonMobil and Chevron, to invest in the country. Iraq has already signed large energy deals with US companies. Last week, Iraq signed energy deals with US firms GE Vernova and UGT Renewables. GE Vernova has committed to producing 24,000 megawatts of electricity, while UGT will implement a 3,000-megawatt solar power project. Baghdad is also stepping up efforts to increase domestic electricity production after the United States rescinded a sanctions waiver in March that had allowed Iraq to import electricity from Iran. The waiver was revoked as part of Washington’s “maximum pressure” campaign targeting Iran’s nuclear and military programs. Following the decision, Iraqi Prime Minister Mohammed Shia’ al-Sudani held meetings with energy officials to explore alternatives, including natural gas utilization and electricity imports from Jordan, Turkey, and Turkmenistan. US State Department spokesperson Tammy Bruce told Rudaw in March that Washington urges Baghdad to reach a deal with the IOCs to resume exports from the Kurdistan Region.
