Members of the Association of the Petroleum Industry of Kurdistan (APIKUR) have called for the immediate resumption of oil exports through the Iraq–Türkiye pipeline (ITP) as the regional dispute continues to impact supplies.
The companies have urged the Government of Iraq to engage with the Kurdistan Regional Government (KRG), and international oil companies in immediate tripartite meetings to discuss the reopening of the 600 mile pipeline.
APIKUR represents eight foreign oil companies operating in the Kurdistan region: DNO, Genel Energy, Gulf Keystone, HKN Energy, Hunt Oil, Mol, Shamaran Petroleum and Western Zagros.
The oil pipeline was initially shuttered by Türkiye in March, 2023 when the International Chamber of Commerce International Court of Arbitration ordered Ankara to pay around US$1.5 billion (TL51.24 billion) in damages to Iraq for transporting oil without Baghdad’s approval.
Prior to the halt of exports, approximately 450 000 bpd of oil were sent to international markets, constituting around 0.5% of global crude supply. APIKUR estimates that US$20 billion has been lost to all parties since the halt.
In March, Iraq’s Ministry of Oil blamed international oil companies for the delay, citing a failure to submit contracts for revision.
In a statement published on 22 September 2024, APIKUR pointed to recent comments by Iraqi Prime Minister Mohammed Shia Al Sudani that the ITP could be reopened by the end of 2024.
The association also noted public statements made by the KRG that direct sales agreements between IOCs and Iraq’s State Organisation for Marketing of Oil offer the best resolution.
Additionally, those agreements should provide the oil companies with surety for payment through upfront payment, escrow arrangements, or payments in-kind at Ceyhan Port in Türkiye.
According to APIKUR, restoration of oil exports through the ITP would provide Iraq and all stakeholders with approximately US$1 billion (ID1.31 trillion) per month in revenue from oil sales.
Additionally, Kurdistan production would support the Iraqi Ministry of Oil’s target of increasing oil production to six million bpd by the end of 2027, with increased export potential from the Kurdistan Region.
APIKUR member companies stated in a public statement that they are prepared to resume exports, contingent upon reaching agreements that provide for payment surety for past and future exports, direct payment, and the preservation of commercial and economic terms.
Read the article online at: https://www.worldpipelines.com/business-news/23092024/oil-companies-in-kurdistan-call-for-restoration-of-iraqtrkiye-pipeline/
