The talks, aimed at restarting exports through the Iraq-Turkey pipeline, have stalled due to ongoing ambiguities surrounding payments and contracts.
Two sources familiar with the matter told Reuters that the negotiations, which began in late February, have failed to resolve the nearly two-year-long impasse that halted oil flows from Iraqi Kurdistan to the Turkish Mediterranean port of Ceyhan. The United States has urged Iraq to resume these exports. Some reports indicate that the Trump administration pressured Iraq to allow the resumption of exports or face sanctions. Iraq's Oil Ministry did not immediately respond to Reuters' requests for comment on the negotiations.
These sources revealed that Iraq's Oil Ministry sent a letter to Kurdish officials on Thursday, requesting the appointment of an independent consultant to assess production and transportation costs from each oil field to determine pricing. Because Baghdad is still negotiating with international oil companies regarding the consultant's authority and responsibilities, the sources stated that this has created doubts about Baghdad's commitment to honoring existing contracts with the Kurdistan region.
One source noted, "There is still no agreed-upon methodology for this, and therefore the concern is that ultimately the companies won't know how much they will be paid for producing oil, as this consultant may change all payment expectations."
The Association of Petroleum Industries of Iraqi Kurdistan (APIKUR), representing eight oil companies operating in Iraqi Kurdistan, stated in a statement to Reuters that it will not resume exports unless Baghdad provides a firm commitment to honor existing contracts and guarantee payment for past and future exports. Referring to the letter, APIKUR stated that the Oil Ministry has shown "no willingness to negotiate a solution that honors the existing oil production sharing contracts." The Iraqi government is attempting to unilaterally establish a separate process. The statement added, "These actions by the Iraqi Oil Ministry are unacceptable."
Major oil producers in Iraqi Kurdistan include companies such as DNO, Genel Energy, Gulf Keystone Petroleum, and Shamaran Petroleum.
Washington wants to see the resumption of Iraqi Kurdistan's oil exports through Turkey, aiming to increase global oil supply and thus help lower prices.
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