APIKUR demands payment guarantees, contract adherence to resume Kurdish oil exports
Also in ECONOMY
Oil companies say $16 fee set by Baghdad for Kurdish oil 'temporary'
'Nothing achieved' in Baghdad meeting over Kurdistan oil exports: Source
Lack of formal deals hinders resumption of Kurdistan oil exports: Firms
Meeting between Baghdad, Erbil, oil producers canceled: Source
A+ A-
ERBIL, Kurdistan Region - An association of oil producers operating in the Kurdistan Region stated on Thursday that any resumption of Kurdish oil exports must be contingent upon guarantees from both Erbil and Baghdad for export payments, as well as adherence to commercial terms outlined in contracts with the Kurdistan Regional Government (KRG).
The Association of the Petroleum Industry of Kurdistan's (APIKUR), an umbrella group of eight international oil firms, is ready to 'finalize the agreements needed to resume oil exports,' said the oil association's spokesman Myles Caggins in a statement. He emphasized that 'the commercial terms and economic model of our [production sharing contracts] PSCs must be upheld,' stressing that the member companies' existing contracts remain legally valid.
APIKUR also highlighted the necessity of formal sales and lifting agreements for future oil exports, in addition to written guarantees for the payment of 'oil delivered but not paid between October 2022 and March 2023.' Payments must be made 'directly and transparently' to the companies without intermediaries or undue delays, the association added.
Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline were halted in March 2023 following a ruling by a Paris-based arbitration court in favor of Baghdad, which claimed Ankara had violated a 1973 pipeline agreement by permitting Erbil to independently export oil starting in 2014.
The Iraqi parliament in early February approved amendments to the federal budget law, which authorized a $16 per barrel production and transport fees for Erbil and international oil companies (IOCs) operating in the Kurdistan Region. This move is seen as crucial to restarting Kurdish oil exports.
The amendments also stipulated that the Iraqi federal government and the KRG must establish an international technical consultant body within 60 days to assess production and transportation costs for oil fields in the Kurdistan Region. If no agreement is reached, the federal council of ministers will appoint the body.
APIKUR stated on Thursday that 'the work scope of an independent technical consultant, as required by the revised budget law, should be agreed upon by all parties and strictly limited to verifying that oil sales invoices align with PSCs terms.' The association added that it has already recommended consultants to KRG officials from renowned 'independent international firms.'
'The international consultant will review the documents, financial records, and contracts from each oil company, and provide a true cost,' Caggins told Rudaw on Thursday, stressing the need for a clear mandate to avoid unnecessary delays.
APIKUR's remarks notably come amid growing uncertainty and cautious optimism about the potential resumption of Kurdish oil exports. In its statement, the association expressed readiness to activate the Iraq-Turkey pipeline used to transfer Kurdish oil, but added that 'additional meetings' are needed to finalize the agreements.
Despite US pressure, negotiations between Iraqi and Kurdish officials, as well as IOCs, have yet to yield concrete results.
A meeting between Iraqi and Kurdish officials, along with IOCs, was held in Baghdad on Thursday, but ended without any agreements, according to one of the attendees, who spoke to Rudaw English on the condition of anonymity.
'Nothing [was] achieved and there was no breakthrough,' the source said, adding that the participants 'agreed to form two committees between Erbil and Baghdad to address urgent issues, including debts, assurances of payment, and the scope of the third party consultant.'
The Iraqi oil ministry had initially invited the KRG's natural resources ministry and APIKUR for a meeting in Baghdad on Tuesday. However, the meeting did occur as planned, and instead, unscheduled meetings were held on Saturday and Thursday.
Importantly, a senior US diplomat attended Thursday's meeting as Washington is intensifying its pressure on Baghdad to quickly resume Kurdish oil exports, according to the well-placed source.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Shafaq News
2 hours ago
- Shafaq News
Iraqi FM calls for regional committee to defuse crisis
Shafaq News/ Iraqi Foreign Minister Fuad Hussein proposed the creation of an open-membership regional committee to facilitate dialogue and de-escalation in the Middle East. According to a statement from the Iraqi Ministry of Foreign Affairs, Hussein took part in the June 20 emergency meeting of Arab foreign ministers—held at Iraq's request—to discuss the implications of the Israeli attacks on Iranian territory. He also headed Iraq's delegation at the 51st session of the Council of Foreign Ministers of the Organization of Islamic Cooperation (OIC), held in Istanbul from June 21 to 22. During his remarks, Hussein warned that the ongoing Israeli escalation poses a serious threat not only to Iran but to the security and stability of the entire region. He urged Arab and Islamic states to take collective action to pressure international powers and develop joint initiatives to halt the crisis. As part of his initiative, Hussein proposed the formation of a joint regional committee with open membership, designed to maintain communication between regional states and help defuse tensions through dialogue. The final communiqué of the emergency Arab meeting condemned the Israeli assault and called for an immediate cessation of hostilities and a return to diplomacy. It also endorsed Hussein's proposal to form a committee under the framework of the OIC. The proposal was later presented at the OIC ministerial meeting, where it gained approval from member states. Hussein also emphasized the gravity of the continuing escalation, including the attacks on Gaza, and Iran, and repeated violations of Iraqi airspace, calling for concrete measures to prevent further destabilization in the region. السيد فؤاد حسين يُفعّل تحرّكاً دبلوماسياً في إسطنبول لاحتواء التصعيد ويبحث الملفات الإقليمية والمشتركة في اجتماعات ثنائية – وزارة الخارجية العراقية — وزارة الخارجية العراقية (@Iraqimofa) June 23, 2025
Shafaq News
2 hours ago
- Shafaq News
Iraqi parliamentary bloc urges emergency Arab summit on Israeli violations
Shafaq News/ Iraq must convene an emergency Arab League summit in response to Israel's violation of Iraqi airspace, Hussein Monis, leader of the Huqooq Parliamentary Bloc, urged on Monday. 'As the current chair of the Arab League, Iraq must act swiftly,' Monis told Shafaq News Agency, pressing for a high-level summit—either among foreign ministers or heads of state. He called for a unified Arab response against the Israeli incursion, which he described as a 'blatant breach of sovereignty ' and a direct threat not only to Iraq but to regional neighbors, including Jordan. His appeal comes as Iran and Israel have traded daily missile and drone strikes since June 13. Despite mounting international pressure for de-escalation, both sides continue to exchange fire across multiple fronts.
Shafaq News
2 hours ago
- Shafaq News
Putin backs Iraq's call to halt regional escalation
Shafaq News/ On Monday, Iraq's Prime Minister Mohammed Shia Al-Sudani warned of the risks of escalating regional tensions during a phone call with Russian President Vladimir Putin, reaffirming Iraq's firm stance against any violation of its sovereignty. According to a statement from the Prime Minister's media office, Al-Sudani condemned Israeli actions against the Islamic Republic of Iran, further criticizing the escalation sparked by US strikes on nuclear facilities. He also denounced repeated incursions into Iraqi airspace by both US and Israeli aircraft. In Turn, Putin underlined the need to halt the escalation, praising Iraq's efforts to prevent the conflict from expanding. The two leaders further discussed bilateral relations and identified opportunities to strengthen cooperation across various sectors, with particular attention to coordinating oil and gas policies within the OPEC+ framework to advance their mutual interests.
