Eight international oil companies (IOCs) that represent more than 90% of the Iraqi Kurdistan Region’s oil production, have reached in principle interim agreements with the Government of Iraq and the Kurdistan Regional Government (KRG) to resume exports via the nominal 1.6-million b/d capacity Iraq-Türkiye Pipeline.
This framework, once signed and implemented, “should allow exports to restart in the coming days, while providing a path toward longer-term arrangements,” according to a press release from the Association of the Petroleum Industry of Kurdistan (APIKUR) announcing the agreements. Initial shipments are expected to reach 230,000 b/d.
The interim plans are in compliance with Iraq’s 2023-25 Budget Law and are expected to be updated following completion of an independent consultant’s review. The agreed framework maintains the sanctity of existing contracts and provides surety of payment to IOCs, the release said. The KRG and IOCs also agreed to meet within 30 days of resuming exports to work towards creating a mechanism for settling outstanding debts owed to IOCs.
APIKUR consists of DNO ASA, Genel Energy PLC, Gulf Keystone Petroleum Ltd., HKN Energy Ltd., ShaMaran Petroleum Corp., Hunt Oil Co., WesternZagros Resources Ltd., and Kalegran (a member of MOL Group). DNO and Genel, however, did not initially sign the agreement, with non-APIKUR companies KAR Group and Forza Petroleum Ltd. joining the other six signatories, according to reporting by Reuters.
“We are confident and optimistic that a win-win solution has been found and once fully signed by all relevant stakeholders, crude oil exports from the Kurdistan Region of Iraq will soon resume through the Iraq–Türkiye Pipeline,” said HKN chief executive officer Russell Freeman.
