Latest news with #PSCs
Iraq Business
11-03-2025
- Business
- Iraq Business
APIKUR Pushes for Agreement to Resume Kurdistan Oil Exports
By John Lee. Representatives from the Association of the Petroleum Industry of Kurdistan (APIKUR) member companies met with officials from the Government of Iraq (GoI) and the Kurdistan Regional Government (KRG) on March 6 to discuss the resumption of oil exports through the Iraq-Türkiye Pipeline. APIKUR reiterated that its member companies are ready to restart exports immediately, provided their longstanding conditions are met. The companies insist on: Payment Surety: Formal sales/lifting agreements with clear terms, ensuring full and timely payment for both past and future oil exports. Payments for oil supplied between October 2022 and March 2023 must also be settled directly and transparently, without intermediaries. Respect for Production Sharing Contracts (PSCs): The legal and economic terms of existing PSCs must be upheld. APIKUR insists that the role of an independent technical consultant, required under the revised Budget Law, should be limited to verifying that oil sales invoices comply with PSC terms. Full statement from APIKUR: Representatives from Association of the Petroleum Industry of Kurdistan member companies attended a meeting with Government of Iraq and Kurdistan Regional Government officials to discuss restoration of oil exports through the Iraq-Türkiye Pipeline on March 6. APIKUR member companies conveyed their conditions required to resume oil exports. Additional meetings are required to finalize agreements. APIKUR member companies (Companies) reiterate that they are ready to immediately resume exports through the Iraq-Türkiye Pipeline as soon as the conditions communicated repeatedly since November 2023 are met, that treats oil producers in Iraq's Kurdistan Region in a similar manner as oil producers in Federal Iraq. Fair and transparent agreements are necessary that include payment surety, transparent implementation of Iraq's budget law stipulations, and resolution of payments that are in arrears. The conditions are: Surety of payment for past and future oil exports. The Companies need formal sales/lifting agreements with the buyers of any exported oil, setting out terms and conditions and providing surety that Companies will be fully paid for the oil - even if in two tranches. There also needs to be agreements put in place that see Companies being paid for oil delivered but not paid for between October 2022 and March 2023. These payments need to be made directly and transparently to the Companies, without intermediaries or undue delays. The Companies need formal sales/lifting agreements with the buyers of any exported oil, setting out terms and conditions and providing surety that Companies will be fully paid for the oil - even if in two tranches. There also needs to be agreements put in place that see Companies being paid for oil delivered but not paid for between October 2022 and March 2023. These payments need to be made directly and transparently to the Companies, without intermediaries or undue delays. Maintenance of Production Sharing Contracts commercial terms and economics. The Companies' existing contracts are legally valid and their terms must prevail. The economic model within the PSC's must be respected. The work scope of an independent technical consultant, required by the revised Budget Law, should be agreed by all parties and limited to confirming that the Companies' oil sales invoices are prepared in accordance with the PSCs, and there needs to be formal agreed dispute resolution provision within the confirmation process. APIKUR member companies have recommended consultants to KRG officials from recognized independent international firms. " APIKUR member companies are ready to meet all stakeholders and finalize the agreements needed to resume oil exports, " said Myles B. Caggins III, APIKUR spokesman. " 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. " (Source: APIKUR) Tags: Association of the Petroleum Industry of Kurdistan (APIKUR), Ceyhan, cg, featured, Genel Energy, GKP, Gulf Keystone Petroleum, Iraq Oil Exports News, Iraq Oil Production News, Iraq-Turkey Pipeline (ITP), KRG, Kurdistan News, Ministry of Oil, oil contracts, oil revenues, OPEC, State Oil Marketing Organization (SOMO), Turkiye
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.
Zawya
13-02-2025
- Business
- Zawya
Chevron Expands Namibia Presence with Petroleum Exploration License 82 (PEL 82) Farm-in, Signaling Growing International Oil Company (IOC) Interest in African Energy
Africa's oil and gas sector continues to draw interest from international oil companies (IOCs) through well-structured Production Sharing Contracts (PSCs) and strategic farm-in agreements. Last week, US major Chevron completed a farm-in agreement with Custos Energy for PEL 82 in the Walvis Basin offshore Namibia. Under this transaction, Chevron acquired an 80% participating interest and operatorship, while Custos and the National Petroleum Company of Namibia each retained a 10% interest. The transaction marks a significant step in the development of Namibia's offshore oil and gas sector. PEL 82, which covers blocks 2112B and 2212A, is considered one of the most attractive opportunities in the Walvis Basin. Notably, around 70% of the total block area is already covered by extensive seismic data – over 3,500 km of 2D and 9,500 km² of 3D data. Previous drilling activities on PEL 82, such as the Murombe-1 and Wingat-1 wells, have provided valuable insights into the potential of the area. Chevron's acquisition of an interest in PEL 82 complements its existing offshore exploration efforts in Namibia, where it operates PEL 90 in the Orange Basin. Chevron's entry into PEL 82 is part of its broader strategy to expand its exploration acreage in promising global geological plays and further solidifies Namibia's position as a leading frontier for oil and gas exploration. One of the most critical factors in attracting IOCs is ensuring that PSCs offer favorable fiscal terms. Competitive tax regimes and profit-sharing models create incentives for investment while allowing governments to secure a fair share of revenues. Equally important is regulatory stability. Consistent and transparent policies provide companies with long-term security, minimizing uncertainties that can deter investment. Beyond Namibia, other African nations have been structuring PSCs that continue to draw in international investors. In Equatorial Guinea, the government signed agreements in June 2024 with Chevron for offshore Blocks EG-06 and EG-11. These contracts, established in partnership with GEPetrol, outline minimum investment requirements, detailed exploration programs, and commitments to sustainable development. The attractiveness of these PSCs is largely due to their location near the productive Block B, home to the Zafiro field, and the clarity of development plans that ensure both state benefits and commercial viability. Algeria has also seen success in crafting appealing PSCs. In 2022, a consortium led by TotalEnergies and including Sonatrach, Occidental and Eni extended a 25-year PSC for Blocks 404a and 208 in the Berkine Basin. The agreement, worth an estimated $4 billion in investment, is set to unlock over one billion barrels of oil equivalent and is made possible under Algeria's updated hydrocarbon law, offering enhanced fiscal incentives and greater investor confidence. Farm-in agreements, like the one recently completed by Chevron, play a pivotal role in fostering collaboration and facilitating resource-sharing and risk mitigation in oil and gas projects. By acquiring stakes in existing exploration or production blocks, companies ensure that projects with high potential receive the necessary capital and expertise to move forward. Successful farm-ins typically focus on assets with proven reserves or strong geological prospects, as seen with Chevron's PEL 82 acquisition, which has extensive seismic coverage and previous drilling activity. This ensures that the project is not only viable but positioned for long-term success. Other notable farm-in agreements across Africa highlight the continent's growing appeal to IOCs. For instance, Azule Energy recently acquired a stake in Block 2914A in Namibia's Orange Basin, further reinforcing the country's emerging status as a key player in offshore exploration. Similarly, Africa Oil Corp has entered the offshore sector in Equatorial Guinea with PSCs for Blocks EG-18 and EG-31, signaling a revitalization of the country's offshore exploration. The success of PSCs and farm-in agreements across Africa underscores the continent's ability to compete for investment in a rapidly evolving global energy market. By maintaining investor-friendly policies, regulatory stability and fostering strategic partnerships, African nations can continue to attract capital and expertise to sustainably develop their oil and gas resources. Discussions on structuring attractive PSCs and fostering high-impact farm-in agreements will take place at African Energy Week (AEW): Invest in African Energies 2025, bringing together industry leaders, investors and policymakers to explore strategies for maximizing Africa's hydrocarbon potential and establishing mutually beneficial partnerships. With major players like Chevron expanding their footprint on the continent, AEW 2025 serves as the ideal platform for dealmaking, networking and shaping the future of Africa's energy landscape. Distributed by APO Group on behalf of African Energy Chamber. AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event.
