Iraq has invited international oil firms and Kurdistan’s energy regulator to talks on resuming crude oil exports, following a dispute over revenue and costs. A meeting is scheduled for March 4 in Baghdad to address existing contracts and align practices with international standards. Kurdish oil exports to Turkey were previously halted, and the outcome of negotiations will impact Iraq’s energy sector and potential revenue generation.
Iraq has extended an invitation to international oil companies and the energy regulatory body of the semi-autonomous Kurdistan region to engage in discussions aimed at resuming crude oil exports from Kurdistan. This meeting, scheduled for March 4 in Baghdad, is conducted amid a prolonged dispute over revenue and associated costs. The Iraqi Oil Ministry has called for collaboration with the Association of the Petroleum Industry of Kurdistan (Apikur), which represents eight oil producers responsible for over 60 percent of the region’s oil output.
The talks will focus on existing contracts and the establishment of agreements that adhere to international best practices in oilfield development, while ensuring national interests are safeguarded. However, Apikur representatives have indicated they will not commence oil exports through Turkey’s Ceyhan port, despite claims from Baghdad suggesting an imminent restart. The Oil Ministry has declared intentions to directly export oil from the region through the state-run Somo, beginning at an initial rate of 185,000 barrels per day, with plans for gradual increases.
Following the announcement of the March 4 meeting, Apikur’s members expressed their readiness to engage with the appropriate officials to resolve issues and restore oil exports for the benefit of the Iraqi populace. The key pipeline facilitating oil transport to Ceyhan from Iraq spans 970 kilometers and previously carried approximately 450,000 barrels daily, with Kurdistan contributing 370,000 barrels before Turkey suspended flows due to an arbitration ruling favoring Baghdad.
Despite attempts at negotiations in Erbil, no consensus was found. The Iraqi federal government sought to resume exports without corresponding commitments to the Kurdish regional government, particularly regarding payment mechanisms. The timing for resuming exports remains undetermined, with officials providing no specific date while indicating that a restart is anticipated soon, possibly within early March.
Reports suggest that the U.S. has been exerting pressure on Iraq to resume Kurdish oil exports to avoid sanctions similar to those imposed on Iran. In light of this situation, Iraq’s Oil Minister announced plans for a restart, yet denial from officials indicates no direct pressure has occurred. Recent communications between the U.S. Secretary of State and the Iraqi Prime Minister have emphasized the importance of Iraq achieving energy independence and upholding contracts with U.S. companies to enhance investment in the oil sector.
In conclusion, Iraq’s initiative to engage in talks with oil firms and Kurdistan’s regulatory body represents a significant step towards resolving the ongoing dispute over crude oil exports. The scheduled discussions aim to align contractual obligations with international standards while addressing financial mechanisms. The potential resumption of exports, influenced by various internal and external factors, including U.S. diplomatic pressure, underscores the complexities surrounding Iraq’s oil sector management and regional governance. The outcome of these discussions may be pivotal for Iraq’s economic stability and energy independence.
Original Source: www.thenationalnews.com
