Iraq to ‘make every effort' to resume Kurdish oil exports: FM
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ERBIL, Kurdistan Region - Iraq's foreign minister said on Tuesday that Baghdad is seeking to resume Kurdish oil exports through the Iraq-Turkey pipeline and will 'make every effort' to do so.
'When we return, we will make every effort to bring the views closer between all three parties, solve problems, and restart the exports of the Kurdistan Region's oil,' Fuad Hussein told reporters in Washington.
Hussein said that the issue of oil exports was on the agenda during his Washington visit. 'I had the opportunity to meet virtually with two companies, as well as two companies operating in the Kurdistan Region, and I heard their perspectives on the ongoing negotiations,' he added.
Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023 after a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin exporting oil independently in 2014.
Despite ongoing talks between Erbil, Baghdad, Ankara, and oil producers - with added pressure from the United States - the exports remain stalled, with their suspension costing Iraq billions of dollars in revenue.
The Iraqi top diplomat said he 'had a lengthy conversation' with Kurdistan Region Prime Minister Masrour Barzani on the matter and is aware of the Kurdistan Regional Government's (KRG) perspective.
On Sunday, oil producers in the Kurdistan Region called for increased efforts to resume Kurdish oil exports, regretting that 'engagements thus far have been limited and unproductive' with the Iraqi government, despite Baghdad publicly stating that it is in favor of the resumption.
'We regret the lack of progress, nevertheless we will continue to push for a resumption [of] oil exports,' said Myles Caggins, spokesperson for the Association of the Petroleum Industry of Kurdistan (APIKUR).
In early April, APIKUR said that their investments have been 'fundamentally harmed' by the closure of the pipeline and that they are in a 'hurry' to resume the oil exports, for which they have been 'at forefront to push negotiations with Baghdad.'
In early February, the Iraqi parliament approved amendments to the federal budget law, authorizing a $16-per-barrel fee for production and transport costs in the Kurdistan Region - a move seen as a crucial step toward restarting exports.
The amendments also require both the federal government and the KRG to establish an international technical consultancy within 60 days to assess production and transportation costs for oil fields in the Kurdistan Region. If an agreement cannot be reached, the federal council of ministers will appoint the consultancy.
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