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Iraq Business
29-04-2025
- Business
- Iraq Business
APIKUR Criticises Baghdad Oil Pipeline Engagement
By John Lee. Representatives of the Association of the Petroleum Industry of Kurdistan (APIKUR) and other international oil companies met with Iraqi and Kurdish officials on 20th April to discuss restarting oil exports via the Iraq-Türkiye Pipeline, but according to a statement from APIKUR on Sunday, no agreement was reached. The trade body said its member companies remain ready to resume exports once binding agreements ensuring payment certainty and addressing arrears are in place, and they have proposed several solutions that align with Iraq's Budget Law and existing contracts. It added that despite public statements supporting a restart, the Iraqi Government's engagements have been "limited and unproductive", with no substantive progress on payment arrangements. Full statement from APIKUR: Representatives of member companies from the Association of the Petroleum Industry of Kurdistan (APIKUR) and other International Oil Companies (IOCs) participated in a meeting on April 20 with officials from the Government of Iraq (GoI) and the Kurdistan Regional Government (KRG) to discuss the resumption of oil exports via the Iraq-Türkiye Pipeline (ITP). Unfortunately, the meeting did not result in any agreements. APIKUR member companies remain ready to immediately resume exports through ITP once binding agreements are in place that ensure payment certainty for such exports in line with each IOC's existing contractual terms, and that resolve all outstanding payment arrears. APIKUR acknowledges the Governments' need to ensure consistency with Iraq's Budget Law. We also note that the KRG's contracts with IOCs have been deemed legal and valid by Iraq's courts; therefore, any payment arrangements, including the scope of work for an international consultant must satisfy both Iraq's Budget Law and the IOCs' existing contracts. With this in mind, multiple solutions and recommendations have been proposed-publicly and privately-by a number of member companies of APIKUR to the GoI and KRG. The recommendations included a proposed scope of work for the international consultant that met the test of consistency with both Iraq's budget law and IOC contracts. However, this has not yet been accepted. On APIKUR proposals for payment surety for future exports, the Governments have indicated willingness to consider options. Notwithstanding, no substantive discussion of arrangements required to ensure payment has taken place. And no progress has been made on the issue of IOC payment arrears. The GoI continues to publicly express the importance of oil exports through the ITP but engagements thus far have been limited and unproductive. APIKUR calls for redoubling of efforts to find mutually beneficial solutions. "APIKUR member companies have repeatedly proposed solutions that satisfy, both, Iraq's Budget Law and comply with international oil company contracts which have been validated in Iraq's courts," said Myles B. Caggins III, spokesman for the Association of the Petroleum Industry of Kurdistan. "We regret the lack of progress, nevertheless we will continue to push for a resumption oil exports through the Iraq-Türkiye Pipeline." (Source: APIKUR)
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.
