Baghdad and Erbil agree on a new mechanism for exporting Kurdistan Region oil.
A source in the North Oil Company in Kirkuk province reported on Thursday that the company will serve as a major hub for receiving and storing Kurdistan’s oil before pumping it through the Turkish port of Ceyhan for export.
The source told Shafaq News Agency, “The final agreement was signed by delegations from Baghdad and Erbil, and includes a memorandum of understanding that will pave the way for ending the export suspension crisis that has cost Iraq billions of dollars in losses.”
The source continued, “The agreement will contribute to the storage of oil delivered by the regional government to the Ministry of Oil, as the North Oil Company will be the main center for receiving and storing the oil before pumping it through the Turkish port of Ceyhan for export.” He confirmed that “the agreement will enter into force in the coming days, after which exports to the port will resume.”
The Ministry of Natural Resources of the Kurdistan Regional Government and the Federal Ministry of Oil announced yesterday, Wednesday, that an agreement had been reached on the mechanism for exporting the region’s oil, following a series of meetings and technical consultations that have extended since July 17.
The Ministry of Natural Resources said in a statement received by Shafaq News Agency that the meetings included field visits to all oil fields in the region, followed by a comprehensive assessment of technical issues and intensive discussions. The discussions resulted in an agreement on August 11th to export oil based on the daily production of the region’s fields, with 50,000 barrels per day allocated to meet domestic needs, and the remaining quantity delivered to the State Oil Marketing Organization (SOMO) for export.
She noted that “the resumption of exports remains linked to the outcome of discussions between the federal and Turkish governments, and the implementation of the necessary measures to begin the process.”
Kurdistan Region oil exports via the Turkish-Ceyhan pipeline were halted in March 2023, following a ruling by the International Chamber of Commerce’s Court of Arbitration in Paris, which required Turkey to pay compensation to Iraq for allowing the region’s oil exports without federal government approval.
Since then, negotiations have been underway between Baghdad and Erbil, with the participation of Ankara, to reach a formula that guarantees the resumption of exports within an agreed-upon legal and technical framework, amid losses estimated at billions of dollars due to the disruption of supplies.
Shafaq.com