Deadlock Persists for Kurdistan Oil Export: APIKUR Says ‘We Regret the Lack of Progress’

Peregraf

In a pointed statement following failed talks with Baghdad and Erbil, the Association of the Petroleum Industry of Kurdistan (APIKUR) voiced frustration at the ongoing impasse over the Iraq-Türkiye Pipeline (ITP).

Representatives from the Association of the Petroleum Industry of Kurdistan (APIKUR) and other international oil companies (IOCs) met with officials from the Iraqi federal government and the Kurdistan Regional Government (KRG) on April 20 to discuss the long-delayed resumption of oil exports through the Iraq-Türkiye Pipeline (ITP). However, the meeting ended without any agreement.

In a statement released today, APIKUR reiterated that its member companies are ready to immediately resume exports once binding agreements are secured, guaranteeing payment certainty in accordance with existing contracts and addressing outstanding arrears.

"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 APIKUR spokesman Myles B. Caggins III. "We regret the lack of progress, nevertheless we will continue to push for a resumption of oil exports through the Iraq-Türkiye Pipeline."

APIKUR acknowledged the governments’ need to align any new agreements with Iraq’s Budget Law but emphasized that the KRG’s contracts with IOCs have already been confirmed as legal by Iraqi courts. Despite multiple proposals from APIKUR, including suggested scopes of work for an international consultant, no consensus has been reached.

While the governments have shown some openness to exploring future payment guarantees, APIKUR noted that no substantive discussions have taken place regarding securing payments or resolving previous debts owed to IOCs.

During the April 20 meeting in Erbil, Umed Sabah, President of the Diwan of the KRG Council of Ministers, said the focus was on the operational status of oil companies and the prospects for restarting exports.

“The meeting discussed the activities of the oil investment companies. The two sides discussed the issue of resuming oil exports with the companies and listened to their opinions in this regard,” he stated.

The talks come after Iraqi Oil Minister Hayyan Abdulghani indicated on April 16 that exports could resume within a week, speaking at the 9th Sulaymaniyah Forum at the American University of Iraq, Sulaimani (AUIS).

Oil exports from the Kurdistan Region and Kirkuk to Türkiye were halted on March 25, 2023, following a ruling by the Paris-based International Chamber of Commerce (ICC) in favor of Baghdad. The court determined that Türkiye had violated a bilateral agreement by allowing Kurdish oil exports without Baghdad’s consent, prompting the closure of the Ceyhan port pipeline.

KRG Prime Minister Masrour Barzani, also speaking at the Sulaymaniyah Forum, blamed the prolonged shutdown on unresolved legal and political disputes with Baghdad. He warned that the Kurdistan Region has suffered losses exceeding $29 billion due to the export halt and stressed that court rulings in favor of the foreign companies must be enforced.

Barzani reiterated the KRG's commitment to protecting the rights of foreign investors and announced that a KRG technical delegation would return to Baghdad for continued negotiations.

"The consent of foreign oil companies remains essential," he stressed.

The resumption of oil exports is seen as vital to relieving economic pressure on the Kurdistan Region and repairing strained relations between Erbil and Baghdad after more than a year of disputes over oil revenues and governance.

APIKUR called for intensified efforts from all sides to find mutually beneficial solutions and unlock the critical oil flows that underpin the region's economy.