Economy News – Follow-up
The Oil Price website on oil affairs said on Monday that oil companies operating in Kurdistan refuse to amend their contracts with the regional government, pointing out that rejecting them will undermine efforts to re-export Kurdish oil.
“Oil companies operating in Kurdistan refuse to amend their contracts with the KRG, which will lead to a dead end in talks on resuming oil exports from Kurdistan,” the British website wrote.
“Companies refuse to amend, so the process stops there,” Prime Minister Mohammed Shiaa Al-Sudani was quoted by the website as saying.
The site added, “Crude oil exports from Kurdistan stopped more than a year ago, after they were closed in March 2023 due to the dispute over who should allow Kurdish exports,” pointing out that “this (impasse) came in the wake of the ruling of the International Chamber of Commerce on a dispute between Turkey and Iraq over Kurdistan oil, and the International Criminal Court ruled in favor of Iraq, which said that Turkey should not allow Kurdish oil exports through the pipeline between Iraq and Turkey and the Turkish port of Ceyhan without the approval of the Iraqi federal government.”
Earlier this year, Iraq’s Oil Ministry said that “foreign oil companies in Iraqi Kurdistan are partly responsible for delays in resuming exports from the semi-autonomous region of OPEC’s second-largest producer.”
Last year, Norwegian company DNO, one of the six members of the Kurdistan Oil Industry Union (APIKUR), said that “international oil companies operating in Kurdistan will not produce oil for export until they have clarity on arrears and futures, payment terms and sales.”
Earlier, foreign companies also called on the U.S. Congress to “take immediate action to help solve the problem of halting crude oil exports from Kurdistan.”
“The export of oil is the basis of Iraq’s economy, and all Iraqis will benefit when full production and global sales from the Kurdistan region are resumed,” Abicor wrote a letter to Congress.
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Added 2024/05/20 – 7:56 PM
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