Baghdad, Iraq -On March 6, a crucial meeting took place between officials from the Kurdistan Regional Government (KRG) and the Government of Iraq (GoI), alongside representatives from the Association of the Petroleum Industry of Kurdistan (APIKUR). The primary topic of discussion was the resumption of oil exports via the Iraq-Türkiye Pipeline. This meeting is considered a vital step toward restarting oil trade in the region.
APIKUR made it clear that its member companies are prepared to resume exports immediately, but only if their long-standing conditions are met. These requirements, first communicated in November 2023, emphasize fairness and transparency, ensuring that oil producers in the Kurdistan Region are treated equitably alongside their counterparts in Federal Iraq.
The first critical condition is payment security. APIKUR insists on having formal sales and lifting agreements in place. These contracts must include clear terms ensuring that oil producers will be paid promptly and fully for their exports. In addition, the companies expect payments for oil supplied between October 2022 and March 2023 to be settled transparently, without intermediaries, and without delay.
Another significant issue is the adherence to Production Sharing Contracts (PSCs). APIKUR insists that the legal and financial terms outlined in these contracts be respected. The companies also emphasized the importance of maintaining the economic framework within these agreements. The revised Budget Law requires an independent technical consultant, but APIKUR suggests that this consultant’s role should be limited to verifying that oil sales invoices comply with PSC terms, without expanding into other areas.
APIKUR’s conditions highlight the need for fair treatment of oil producers in the Kurdistan Region, ensuring that the economic arrangements mirror those applied to Federal Iraq producers. The companies are determined that the existing PSCs must be upheld, and they are pushing for a transparent and straightforward process for all payments and invoicing.
APIKUR representatives expressed their readiness to continue discussions and finalize agreements, making it clear that the resumption of exports is contingent on the fulfillment of these conditions. “We are prepared to engage with all relevant parties to ensure that oil exports can resume smoothly,” said APIKUR spokesman Myles B. Caggins III. He also noted the importance of the continued support from Prime Minister Sudani and the U.S. Government in securing a swift resolution.
The restoration of oil exports is expected to play a vital role in strengthening Iraq’s economy, and both the KRG and GoI are hopeful that these key conditions will lead to a successful resumption of trade through the Iraq-Türkiye Pipeline.
