The Iraqi Federal Ministry of Oil called an urgent meeting with the Iraqi Kurdistan Regional Government (KRG) and operating companies to accelerate oil production in the autonomous region, Shafaq News reported on May 28.
In an official statement issued earlier, the Federal Ministry of Petroleum said that “seeks to resume production from fields located in the Kurdistan Region and resume exports through the northern pipeline system in the national interest.”
The Federal Ministry invited the KRG Ministry of Natural Resources and international oil companies operating in the region to hold a meeting in Baghdad “As soon as possible”discuss this issue and reach an agreement to accelerate the resumption of production and export of oil produced through the Turkish port of Ceyhan, in accordance with the volumes specified in the budget law.
The call comes amid a long-running dispute between the federal government and the KRG over oil exports. The KRG exports oil from its fields independently, while the federal government insists that all exports must be through the Iraqi State Oil Marketing Company (IOC).
The dispute has led to a reduction in oil exports from Iraq, which is one of OPEC’s largest producers. The two sides have held several rounds of talks in recent months, but no agreement has been reached.
Oil exports from Kurdistan via the Iraq-Turkey pipeline were halted on March 23, 2023, after a Paris arbitration court ruled in favor of Baghdad against Ankara. The court found that Ankara violated the 1973 agreement by allowing Erbil to begin independent oil exports in 2014.
The prolonged closure of the pipeline caused significant losses for both Baghdad and Erbil. It halted daily exports of 450,000 barrels of crude oil, about 0.5% of the world’s oil supply.
Negotiations have stalled due to conflicting demands from Ankara, Baghdad and Erbil. Baghdad considers production-sharing agreements between Kurds and foreign companies illegal, according to a ruling by Iraq’s Supreme Federal Court. The Iraqi federal government insists that foreign oil companies negotiate new contracts with the Iraqi Oil Ministry.
Source: Rossa Primavera
I am Michael Melvin, an experienced news writer with a passion for uncovering stories and bringing them to the public. I have been working in the news industry for over five years now, and my work has been published on multiple websites. As an author at 24 News Reporters, I cover world section of current events stories that are both informative and captivating to read.