Peregraf
Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani is scheduled to meet with Turkish President Recep Tayyip Erdogan on Tuesday, with oil exports taking center stage in discussions alongside bilateral relations and regional issues.
The meeting, reported by Turkey’s Anadolu Agency, underscores efforts to revive oil exports between the Kurdistan Region and Turkey. Exports have been suspended since March 2023, following an International Court of Arbitration ruling in favor of Iraq in its dispute with Turkey. The halt has led to an estimated $23 billion in losses for Iraq and the Kurdistan Region, significantly impacting their economies.
This follows Barzani’s recent phone conversation on January 3 with Geoffrey R. Pyatt, the U.S. Assistant Secretary of State for Energy Affairs, where the resumption of oil exports and broader energy cooperation were discussed. Barzani stressed the urgency of resolving the suspension, highlighting its detrimental effects on Iraq’s budget and economic stability.
“We emphasized the need to address outstanding issues and remove barriers to oil exports, as the suspension continues to harm Iraq’s economy,” Barzani stated. He also reiterated the importance of upholding the Kurdistan Region’s financial rights under Iraq’s constitution and the region’s pivotal role in advancing energy independence and regional stability.
The upcoming meeting with Erdogan is expected to explore ways to overcome these challenges and reestablish the vital energy partnership between the Kurdistan Region and Turkey.
The ongoing disagreement between Baghdad and Erbil also centers on financial terms with international oil companies (IOCs) operating in the region. Baghdad seeks to renegotiate payment terms and replace the KRG’s production-sharing contracts with service contracts, but these changes face resistance from IOCs.
Efforts to amend Iraq’s budget law are seen as a crucial step toward resolving these issues. The next few weeks will be critical in determining whether legislative and diplomatic initiatives can restore stability to Iraq’s oil sector and revive trust among industry stakeholders.