Regional oil companies seek agreements to resume oil exports.. and America is "interested" in reopening the Ceyhan pipeline
The global oil company, APIKUR, operating in the Kurdistan Region, seeks to sign clear agreements with Baghdad and Erbil that guarantee the payment of its past and future financial dues in preparation for the resumption of oil exports, as it confirmed that the United States is still very interested in reopening the Iraq-Turkey Ceyhan export pipeline from the Kurdistan Region’s fields.
In an interview with the K24 news website, translated by (Al-Mada), the spokesman for the APIKUR group, Miles Caggins, described the recent meeting in Baghdad as a step forward in discussing the resumption of oil exports from the Kurdistan Region, stressing the need for clear agreements and written guarantees.
Caggins said in a statement to the news website that the meeting allowed the member companies of the APIKUR group to directly convey their conditions to the federal government authorities in Baghdad and the Kurdistan Regional Government.
Among the main issues discussed in the meeting was the selection of an international consultant to evaluate the costs of oil production and export.
The APIKUR group has urged the Iraqi government to define the scope of the consultant’s work, his responsibilities, and the timetable for his activity. The Epicor Group provided the Ministry of Natural Resources of the Kurdistan Regional Government with a list of independent experts specialized in the assessment process.
The report indicated that other meetings are planned to establish agreements through which oil exports can be allowed to resume through the Iraq-Turkey Ceyhan export pipeline, which is a priority emphasized by Iraqi Prime Minister Mohammed Shia al-Sudani.
The member companies of the APICORP group called for the conclusion of transparent and fair agreements regarding future financial payments, in addition to settling and paying the debts due for invoices amounting to $1 billion.
Caggins, an APICORP spokesman, said: “We need written guarantees and we have proposed solutions,” noting that “APICOR is open to receiving financial payments, whether through the companies selling their allocations of produced oil, or through cash payments through escrow accounts to ensure that the amounts due are paid on time.”
He stressed the need for “financial agreements not to be affected by political aspects and atmospheres.”
While Turkey announced that the Iraq-Turkey Ceyhan pipeline is ready for operation following inspections, the APICORP group stressed the need for agreements between Baghdad and Erbil to allow exports to resume.
The APICORP spokesperson highlighted the strategic importance of oil exports from both the Kurdistan Region and southern Iraq, stressing that a stable energy sector would strengthen the country’s economic and security position.
He also reiterated that APICORP has no oversight role over exports, which are the responsibility of the State Oil Marketing Organization (SOMO) and the Iraqi Ministry of Oil.
Caggins added that the United States remains very interested in reopening the export pipeline, and that the Trump administration is discussing the matter with the previous administration. Given the important development, and the humanitarian and military assistance that the United States provides to Iraq, APICORP calls on the Iraqi authorities to treat American and other foreign oil companies fairly, especially those operating in the Kurdistan Region
.
“The only obstacle to resuming oil exports is the need for clear agreements,” Caggins stressed, noting that “a simple three-page document could solve the problem and allow exports to resume according to standard commercial procedures and practices.”
While negotiations on this matter continue, the Epicor Group expressed its readiness to meet again and reach an agreement that benefits all parties.
Oil exports from the Kurdistan Region’s fields via the Iraq-Turkey-Ceyhan pipeline were halted on March 23, 2023, following a ruling by the International Chamber of Commerce in Paris in favor of Baghdad against Turkey for facilitating oil exports between 2014 and 2018 without the approval of the federal government. Turkey must pay Iraq $1.5 billion in outstanding amounts, according to the court ruling, which Turkey refused to implement and closed the pipeline.
Reports indicated that the chronic closure of the Ceyhan export pipeline has caused significant losses to both Baghdad and Erbil, as it has halted crude oil exports at a rate of 450,000 barrels per day, a figure that represents 0.5% of global market supplies. link
