Hussein: Iraq’s losses from the suspension of Kurdistan Region oil exports amount to approximately $25 billion.
Iraqi Foreign Minister Fuad Hussein said that the country has incurred losses ranging between $22 and $25 billion due to the halt in oil exports from the Kurdistan Region, and that flows are likely to resume this week.
This figure represents an increase from previous estimates of losses of $19 billion as of last February.
This comes as the region and most operating oil companies have signed an agreement to resume exports. However, the agreement still requires formal approval from the federal government in Baghdad, according to a statement from the regional government’s Ministry of Natural Resources.
The ministry stated that it is still awaiting a response from the federal oil ministry, while the state-run oil marketing company SOMO stated that the agreement is in its “final stages.”
KRG spokesman Peshwa Hawrami indicated that exports could begin within 48 hours of the full agreement being concluded.
The resumption of pumping through the pipeline linking Kurdistan and Turkey is expected to result in an initial flow of approximately 230,000 barrels per day to global markets, amid concerns of an oil glut due to increased production by the OPEC+ alliance.
The region was pumping about 500,000 barrels per day before exports halted in March 2023, following an arbitration ruling requiring Ankara to pay $1.5 billion to Baghdad, prompting Türkiye to halt use of the pipeline.
In July, the region agreed to hand over its oil to SOMO for international sale, a move to defuse the protracted dispute over oil revenues.
Baghdad also invited the regional government and representatives of foreign oil companies to a new meeting to discuss the details of resuming exports and ensuring payment of financial arrears.
Companies such as Norway’s DNO and General Energy have emphasized their desire for clear guarantees for payment of overdue receivables and clarification of the payment mechanism for future exports.
The list of foreign companies operating in the region includes: Gulf Keystone Petroleum, HKN Energy, Shamaran Petroleum, and Hunt Oil.
Shafaq.com