Erbil, Kurdistan Region – Iraq’s Oil Minister, Hayyan Abdul Ghani, confirmed on Thursday that Baghdad is considering the possibility of exporting oil from the southern Basra province to Turkey via the Iraq-Turkey pipeline. Discussions are also ongoing regarding the resumption of Kurdish oil exports.
At the helm of the Iraqi-Turkish Committee meeting, Minister Abdul Ghani discussed the “imminent activation of the oil export file” through the oil pipeline to Turkey’s Ceyhan port, with plans to potentially increase oil exports from Basra’s oil fields. The statement from Iraq’s oil ministry highlights the ongoing conversations surrounding this significant development.
This announcement coincides with a series of talks between representatives from Iraq’s oil ministry, the Kurdistan Regional Government’s (KRG) Ministry of Natural Resources, and foreign oil companies. These talks aim to resolve issues surrounding the resumption of Kurdish oil exports, which were halted in March 2023 following a Paris-based arbitration court’s ruling. The court had ruled in favor of Baghdad against Ankara, stating that Turkey had breached a 1973 pipeline agreement by allowing Erbil to independently export oil since 2014.
A representative from one of the international oil companies participating in the meetings, speaking anonymously, revealed to Rudaw English that a senior US official from the American embassy in Baghdad is expected to attend. The United States has reportedly been increasing pressure on Baghdad to resume Kurdish oil exports promptly.
International oil companies operating in the Kurdistan Region have made it clear that they require assurances regarding payments under Iraq’s budget amendment. This amendment mandates that Baghdad pay the KRG $16 per barrel in production costs, a crucial issue that the companies want guaranteed before any further actions are taken.
The potential resumption of Kurdish oil exports through the Iraq-Turkey pipeline, along with the exploration of additional export routes from Basra, marks an important phase in Iraq’s energy sector, as the government works to resolve outstanding issues and regain access to international markets.
