APIKUR Pushes for Agreement to Resume Kurdistan Oil Exports

By John Lee.

Representatives from the Association of the Petroleum Industry of Kurdistan (APIKUR) member companies met with officials from the Government of Iraq (GoI) and the Kurdistan Regional Government (KRG) on March 6 to discuss the resumption of oil exports through the Iraq-Türkiye Pipeline.

APIKUR reiterated that its member companies are ready to restart exports immediately, provided their longstanding conditions are met. The companies insist on:

• Payment Surety: Formal sales/lifting agreements with clear terms, ensuring full and timely payment for both past and future oil exports. Payments for oil supplied between October 2022 and March 2023 must also be settled directly and transparently, without intermediaries.
• Respect for Production Sharing Contracts (PSCs): The legal and economic terms of existing PSCs must be upheld. APIKUR insists that the role of an independent technical consultant, required under the revised Budget Law, should be limited to verifying that oil sales invoices comply with PSC terms.

Full statement from APIKUR:

Representatives from Association of the Petroleum Industry of Kurdistan member companies attended a meeting with Government of Iraq and Kurdistan Regional Government officials to discuss restoration of oil exports through the Iraq-Türkiye Pipeline on March 6.  APIKUR member companies conveyed their conditions required to resume oil exports.  Additional meetings are required to finalize agreements.

APIKUR member companies (Companies) reiterate that they are ready to immediately resume exports through the Iraq-Türkiye Pipeline as soon as the conditions communicated repeatedly since November 2023 are met, that treats oil producers in Iraq's Kurdistan Region in a similar manner as oil producers in Federal Iraq.  Fair and transparent agreements are necessary that include payment surety, transparent implementation of Iraq's budget law stipulations, and resolution of payments that are in arrears. The conditions are:

• Surety of payment for past and future oil exports. The Companies need formal sales/lifting agreements with the buyers of any exported oil, setting out terms and conditions and providing surety that Companies will be fully paid for the oil - even if in two tranches. There also needs to be agreements put in place that see Companies being paid for oil delivered but not paid for between October 2022 and March 2023.  These payments need to be made directly and transparently to the Companies, without intermediaries or undue delays.
• Maintenance of Production Sharing Contracts commercial terms and economics. The Companies' existing contracts are legally valid and their terms must prevail. The economic model within the PSC's must be respected.  The work scope of an independent technical consultant, required by the revised Budget Law, should be agreed by all parties and limited to confirming that the Companies' oil sales invoices are prepared in accordance with the PSCs, and there needs to be formal agreed dispute resolution provision within the confirmation process.  APIKUR member companies have recommended consultants to KRG officials from recognized independent international firms.

"APIKUR member companies are ready to meet all stakeholders and finalize the agreements needed to resume oil exports," said Myles B. Caggins III, APIKUR spokesman.  "We appreciate the emphasis Prime Minister Sudani and the U.S. Government have placed on keeping all parties focused on swiftly restoring oil exports through the Iraq-Türkiye Pipeline to strengthen Iraq's economy."

(Source: APIKUR)