Kurdistan Petroleum Association Backs Talks to Restart Oil Production, 18 NOV
In a recent development, the Association of the Petroleum Industry of Kurdistan (APIKUR), an organization representing international oil companies operating in the region, has expressed support for the ongoing discussions between Iraqi and Kurdish officials. The discussions are aimed at restarting full oil production and exports from the Kurdistan Region. This comes after Turkey halted oil exports on March 25, following Iraq’s victory in an international arbitration court over unauthorized exports.
Restarting the Oil Production
On November 12-13, a meeting occurred between Iraq’s Ministry of Oil and Kurdistan Region officials. According to reports, the meeting concluded with a mutual understanding, although a final decision is pending further discussions in Baghdad. APIKUR, which was established in 2023 and accounts for about half of the Kurdistan Region’s oil production, was not part of this meeting. They have not received any official communication regarding the outcomes of the discussions.
Financial Implications and APIKUR’s Stance
APIKUR has been vocal about the financial impact of the halted exports. It estimates over $7 billion in lost revenue and over $1 million per day in penalties due to unmet obligations under the Iraq-Turkey Pipeline agreement. The association has emphasized the need for payment surety, direct remittance of prospective oil sales to member companies, and maintaining current commercial terms.
Future Prospects
International oil companies operating in the region will not resume oil production for pipeline exports until the overdue payments issue, estimated at nearly $1 billion, is resolved. Meanwhile, the Iraqi Oil Ministry has announced plans to reopen the 970-kilometer-long pipeline that transports Iraqi crude from Kirkuk to export facilities in Ceyhan on the Mediterranean coast. Closed in 2014 due to Daesh attacks, the strategic pipeline could potentially transfer crude oil from the Gulf to Europe, once rehabilitated.
Despite the challenges, APIKUR remains committed to resolving issues to resume full oil production and export, for the benefit of all stakeholders. The ongoing discussions between Iraqi and Kurdish officials signal a positive step towards this goal.
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