Kurdish Oil Producers Set Conditions for Resumption of Exports through Iraq-Türkiye Pipeline

On March 6, representatives from the Association of the Petroleum Industry of Kurdistan (APIKUR) met with officials from both the Government of Iraq (GoI) and the Kurdistan Regional Government (KRG) to discuss the possibility of restarting oil exports via the Iraq-Türkiye Pipeline. APIKUR, which represents major oil producers in the Kurdistan Region, reaffirmed its readiness to resume exports immediately, provided certain key conditions are met.

The primary conditions outlined by APIKUR include:

1. Payment Assurance: APIKUR stressed the need for formal sales agreements with clear terms to guarantee full and timely payment for both past and future oil exports. Payments for oil supplied between October 2022 and March 2023 must be settled directly and transparently, with no intermediaries involved.
2. Respect for Existing Production Sharing Contracts (PSCs): APIKUR emphasized that the legal and economic terms of the existing PSCs must be upheld. The group also insisted that the role of the independent technical consultant, as outlined in the revised Budget Law, should be strictly limited to verifying that oil sales invoices comply with the PSC terms, without expanding their scope beyond this.

APIKUR’s official statement further clarified that these conditions have been communicated repeatedly since November 2023. The association insists that oil producers in the Kurdistan Region should be treated on equal terms as those in federal Iraq. For this, APIKUR called for fair, transparent agreements that ensure the resolution of outstanding payments and the full implementation of Iraq’s budget law stipulations.

The representatives also mentioned that additional meetings will be required to finalize agreements. APIKUR reiterated that member companies are prepared to resume exports as soon as these conditions are met, with agreements covering past unpaid deliveries as well as future exports.

Myles B. Caggins III, a spokesperson for APIKUR, commented, “APIKUR member companies are ready to meet all stakeholders and finalize the agreements needed to resume oil exports. We appreciate the emphasis Prime Minister Sudani and the U.S. Government have placed on keeping all parties focused on swiftly restoring oil exports through the Iraq-Türkiye Pipeline to strengthen Iraq’s economy.”

The resumption of oil exports through the pipeline is critical for Iraq’s economy, and both the Iraqi and Kurdish authorities are working to address these concerns to ensure the smooth continuation of oil shipments.