Latest news with #Caggins
Rudaw Net
10-03-2025
- Business
- Rudaw Net
Oil producers welcome US-Iraq statements on oil exports resumption
Also in ECONOMY Baghdad says Kurdish oil exports could restart this month APIKUR demands payment guarantees, contract adherence to resume Kurdish oil exports Oil companies say $16 fee set by Baghdad for Kurdish oil 'temporary' 'Nothing achieved' in Baghdad meeting over Kurdistan oil exports: Source A+ A- ERBIL, Kurdistan Region - Oil producers in the Kurdistan Region on Monday welcomed the recent phone call between US National Security Advisor Michael Waltz and Iraqi Prime Minister Mohammed Shia' al-Sudani that called for the resumption of oil exports through the Iraq-Turkey pipeline. Myles Caggins, spokesperson for the Association of the Petroleum Industry of Kurdistan (APIKUR), told Rudaw English that oil producers 'remain ready to resume exports as soon as we have new agreements for sales and lifting.' 'APIKUR appreciates the intent and statements from both Prime Minister Sudani and National Security Advisor Mike Waltz indicating the high priority of restoring oil exports through the Iraq-Turkey pipeline,' Caggins said. During the meeting, Waltz encouraged Baghdad to work with the Kurdistan Regional Government (KRG) to address the companies' persisting contract disputes and 'pay arrears owed to U.S. energy companies,' according to his statement on X. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been halted 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 independent oil exports in 2014. The Iraqi parliament in early February approved amendments to the federal budget law to authorize a $16 per barrel production and transport fee for international oil companies operating in the Kurdistan Region. This move is seen as crucial to restarting 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. 'We are ready to meet with all parties,' Caggins said. On Saturday, Iraqi government spokesperson Bassem al-Awadi told Rudaw that all major obstacles have been cleared for the resumption of the Kurdistan Region's oil exports and that they 'may restart this month.'
Rudaw Net
06-03-2025
- Business
- Rudaw Net
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.
Rudaw Net
06-03-2025
- Business
- Rudaw Net
Oil companies say $16 fee set by Baghdad for Kurdish oil ‘temporary'
Also in ECONOMY '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 Iraq confirms agreement with KRG to resume Kurdish oil exports A+ A- ERBIL, Kurdistan Region - Baghdad's $16 compensation rate per oil barrel for the Kurdistan Regional Government (KRG) and oil companies operating in the Region is not final and may change following the evaluation of an international consultant, who has yet to be selected, spokesperson for the oil companies said on Thursday amid ongoing efforts to resume Kurdish oil exports. According to a recent amendment to the Iraqi budget law, the federal government is required to pay $16 per barrel to the KRG for production fees, which will then be reliably distributed to the producers. Myles Caggins, spokesperson for the Association of the Petroleum Industry of Kurdistan (APIKUR), told Rudaw on Thursday that they have submitted a list of 'internationally known independent evaluators' and emphasized the importance of transparency. He added that the consultant will determine the true cost of oil production. 'We need to know the scope of work for the international consultant who will evaluate the cost of production from each oil field. This is important. As you know, in the budget law, there is $16 per barrel of oil allocated for what we call cost recovery. And that is a temporary number,' said Caggins. 'The international consultant will come and review the papers, the financial records, and the contracts from each oil company, and then they will provide a true cost, an accurate cost of production and transportation for each oil field. If we do not know the scope of work, then that consultant may be working for years and years and years, or they may use some method of calculation that is not agreed to by the companies and the MNR [KRG's ministry of natural resources]. So therefore, it is important that we have a clear understanding of that consultant's scope of work,' he added. Despite US pressure, Iraqi and Kurdish officials, along with international oil companies, met in Baghdad on Thursday but failed to reach any agreements. A senior American diplomat attended the meeting, a participant told Rudaw English. 'Nothing [was] achieved and there was no breakthrough,' the source told Rudaw English on the condition of anonymity but noted 'slight progress.' They added that the participants agreed to form two committees, one of which has already been established, to convene early next week to address outstanding issues. These include structuring a sustainable debt resolution framework, defining the precise mandate of the third-party consultant Caggins mentioned, and ensuring a clear and mutually agreeable payment framework, whether in monetary terms or in-kind settlements.
Rudaw Net
04-03-2025
- Business
- Rudaw Net
Lack of formal deals hinders resumption of Kurdistan oil exports: Firms
Also in ECONOMY Meeting between Baghdad, Erbil, oil producers canceled: Source Iraq confirms agreement with KRG to resume Kurdish oil exports BP finalizes deal with Iraq to rehabilitate Kirkuk fields KRG, Baghdad strike deal to restart Kurdish oil exports A+ A- ERBIL, Kurdistan Region - Oil companies operating in the Kurdistan Region emphasized on Tuesday that the absence of a formal agreement with the Iraqi government remains the main obstacle to resuming Kurdish oil exports after nearly two years of halt. The Iraqi oil ministry had invited the Association of the Petroleum Industry of Kurdistan (APIKUR), which consists of eight oil companies operating in the Kurdistan Region, and the Kurdistan Regional Government's natural resources ministry for a meeting in Baghdad on Tuesday. However, the meeting did not take place as scheduled, and an unannounced meeting was held on Saturday instead. Myles B. Caggins III, spokesperson for APIKUR, told Rudaw English on Tuesday that they were not too concerned about the postponement of the meeting, adding that there might be a second meeting on Thursday. 'APIKUR welcomes any meeting that involves all stakeholders [and] that will finalize all necessary agreements for oil exports to resume,' he asserted. Caggins added that the conditions set on Friday for the resumption of Kurdish oil exports remain unchanged. 'APIKUR member companies remain prepared to immediately resume exports as soon as formal agreements are reached to provide surety of payment for past and future exports consistent with our existing contractual legal and commercial terms. There has not yet been any outreach in this regard to APIKUR member companies,' the umbrella group said in a statement on Friday. The companies also want assurances that payments under Iraq's budget amendment - requiring Baghdad to pay $16 per barrel in production costs to the KRG - will be reliably distributed to the producers. Caggins told Rudaw on Saturday that the companies seek compensation within their 'commercial terms' of the current contracts, adding that the contracts are backed up by international law and tested by Iraqi courts. 'We must have guarantees that these payments will occur,' he added. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline were halted in 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 independent oil exports in 2014. In February, Sudani stated that Baghdad aimed to open a new chapter with international oil companies in the Kurdistan Region after the Iraqi parliament approved a budget law amendment that raised the compensation paid for oil companies operating in the Kurdistan Region. Turkey has been ready to receive the Kurdish oil since late 2023 but has yet to receive a confirmation from the Iraqi side.
Rudaw Net
01-03-2025
- Business
- Rudaw Net
Baghdad invites Kurdistan oil producers, KRG for talks
Also in Iraq PUK and KDP seek greater foothold in Baghdad, says Kurdish MP 95% fish, 30% buffalos in Iraq's marshes are lost: NGO Kurdistan's oil exports to resume 'in coming hours': oil ministry Oil producers welcome Rubio's efforts to restart Kurdish exports A+ A- ERBIL, Kurdistan Region - Iraq's federal oil ministry on Saturday invited foreign oil companies and the Kurdistan Regional Government (KRG) to meet on Tuesday with the goal of resolving disputes and advancing oil field development. The oil companies have said they will not resume exports unless key conditions, including new agreements and payment guarantees, are met in writing. The oil ministry said the talks are intended to reach an understanding that ensures 'the development of oil fields using best global practices in a way that serves national interests.' It invited oil producers operating under the Association of the Petroleum Industry of Kurdistan (APIKUR) and the Kurdistan Regional Government (KRG)'s Ministry of Natural Resources to the meeting. APIKUR, which represents eight international oil firms, responded by outlining conditions for resuming exports. 'Before our companies begin exporting oil through the pipeline, we must have new agreements - sales and lifting agreements,' APIKUR spokesperson Myles Caggins told Rudaw's Bakhtiyar Abdulaziz, adding that they seek clarity on many issues, including production quantity and costs. He also said that the matter of outstanding payments must be addressed, stating, 'Our companies are owed $1 billion,' and that while discussions have been held with both Erbil and Baghdad, 'we must have guarantees that the payments will occur.' The companies also want assurances that payments under Iraq's budget amendment - requiring Baghdad to pay $16 per barrel to the KRG - will be reliably distributed to the producers. Caggins highlighted United States interests in a strong Iraqi energy sector, pointing out that three American firms within APIKUR have invested billions in Kurdistan's oil industry. 'America is very serious about wanting Iraq to have a strong economy,' he said, adding that under President Donald Trump, Washington wants to 'unleash energy around the world.' APIKUR member companies currently produce more than 60% of Kurdistan's oil, which they are currently selling on the local market. 'We want the pipeline to sell in global markets - more revenues for us and Iraq,' Caggins said. However, he noted that restarting oil production at full capacity will take time. 'We might not get to 400,000 barrels per day in a few days due to geology. It might take a few weeks or months.' The companies insist that their contracts with the KRG remain legally valid, having been upheld under international law and tested in Baghdad's courts. 'In federal Iraq, oil companies have the same sales and lifting agreements. We want the same thing here in the Kurdistan Region,' Caggins said. He also noted the economic role of APIKUR firms, noting that '80% of employees at APIKUR companies are Kurdish and Iraqi.' With more than $24 billion in lost revenues due to the ongoing dispute, APIKUR said it remains committed to investing in Kurdistan's oil sector, but needs clear contractual guarantees. 'We want to continue investing, drill more wells, and maintain production volumes to have the strongest oil and gas sectors in Kurdistan,' Caggins said. Kurdish oil exports were stopped in March 2023 after the International Court of Arbitration ruled in Iraq's favor that Turkey had violated a 1973 pipeline agreement when it allowed the Kurdistan Region to independently export oil. Iraq's Prime Minister Mohammed Shia' al-Sudani said on February 26 that Baghdad wants to open a 'new page' with the international oil companies operating in the Kurdistan Region after the federal parliament approved an amendment to the budget law, increasing the fee of oil companies operating in the Kurdish region.
