Calls to Resume Kurdistan Oil ExportsERBIL (Kurdistan 24) – Col. Myles B. Caggins III, spokesperson for the Association of the Petroleum Industry of Kurdistan (APIKUR), emphasized on Monday the urgent need for agreement to resume oil exports from the Kurdistan Region via the Iraq-Turkey pipeline, which has been shut down since March 2023Speaking to Kurdistan 24, Caggins noted, “We are reporting our annual production numbers through quarterly shareholders' meetings and earnings reports.”
However, he warned that current market conditions are unsustainable. “Oil produced in Iraqi Kurdistan is currently sold locally at around $30 per barrel—less than half the $65 to $70 per barrel it could earn on the international market,” Caggins explained. “Selling oil locally does not maximize revenue for our companies or contribute to Iraq’s overall economic prosperity.”
Before the halt in exports, the Kurdistan Region was sending over 400,000 barrels of oil daily through the Turkish port of Ceyhan. With the pipeline idle, local refineries are the only buyers, converting crude into domestic fuels like gasoline, diesel, and kerosene. While necessary, Caggins emphasized that local demand cannot replace the benefits of global sales.
Caggins said APIKUR member companies remain open to dialogue and are eager to restart exports. “We are ready to meet with both the Kurdistan Regional Government (KRG) and the federal government of Iraq,” he stated. “Several meetings have already taken place, and we welcome the Ministry of Oil’s call for another.”
He stressed that future exports must be backed by clear, enforceable agreements. “We need clarity on how we will be paid. These are complex financial transactions, but not new to the federal government, which has long managed similar arrangements in federal Iraq.”
One ongoing challenge is the appointment of an international consultant to assess production and transportation costs, as stipulated in Article 12 of Iraq’s budget amendment. “APIKUR member companies must be involved in reviewing and approving the consultant’s scope of work,” Caggins noted. “This is a basic expectation for any business subject to an external financial evaluation.”
He also reiterated the need for equal treatment of companies operating in the Kurdistan Region. “Our contracts with the KRG are legal, recognized by London courts of arbitration, and have been upheld by Iraqi courts,” Caggins said. “These agreements must be respected, and production-sharing terms clearly defined.”
Caggins praised efforts by both Kurdistan Region Prime Minister Masrour Barzani and Iraqi Prime Minister Mohammed Shia’ al-Sudani to resolve the issue. “Prime Minister Barzani has actively engaged leaders in Baghdad, Ankara, and Washington. It’s clear that reopening the pipeline is a top economic priority,” he said.
Despite official Iraqi statements indicating that exports would resume imminently, no oil has yet flowed through the pipeline. “For us, written agreements must come first. We cannot risk sending oil without knowing when and how we’ll be paid,” Caggins said.
APIKUR continues to push for constructive dialogue and meaningful outcomes. “We’ve made our position clear: Our companies are ready. It’s time for action,” he concluded.
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