Economy

APIKUR optimistic about KRG's oil pipeline ahead of White House meeting

APIKUR, an association representing numerous oil companies operating in the Kurdistan Region, sees the meeting as a pivotal moment to break the deadlock hindering pipeline exports from the Kurdistan Region.

Kurdistan 24 2024/04/13 09:40

The Association of the Petroleum Industry of Kurdistan (APIKUR). (Photo: Kurdistan 24)

Kurdistan APIKUR US Visit Iraq-Turkey Pipeline Resumption of Oil Exports

ERBIL (Kurdistan 24) — The imminent White House meeting between Iraqi Prime Minister Mohammad Shia al-Sudani and the US President Joe Biden on April 15 has sparked optimism among stakeholders regarding the future of oil production and exports through the Iraq-Turkey pipeline (ITP).

"APIKUR member companies are eager to immediately reach a mutually beneficial resolution between the Government of Iraq, Kurdistan Regional Government, and International Oil Companies to restore exports through the Iraq-Turkey pipeline," stated Myles B. Caggins III, spokesperson for APIKUR.

The impasse over the ITP stems from a ruling by the International Chamber of Commerce over a year ago, resulting in the halt of oil exports. Despite Turkey expressing readiness to resume exports, the pipeline remains closed, causing significant losses in export revenues for Iraq and missed opportunities for economic growth.

According to APIKUR, the lack of agreement has cost Iraq more than $14.5 billion in lost export revenues and has deprived the region of substantial employment and investment prospects.

In hopes of finding a resolution, representatives from the Government of Iraq, Kurdistan Regional Government, and International Oil Companies, including APIKUR members, convened in Baghdad on January 7-9, 2024. While no formal proposals have been tabled since then, APIKUR remains open to further discussions.

The upcoming meeting at the White House is seen as a chance to inject urgency into the negotiations and to galvanize all stakeholders towards a swift resolution. APIKUR emphasizes the importance of restoring exports through the ITP for the stability and prosperity of the Kurdistan Region's as well as Iraq’s oil and gas sector, which in turn will attract much-needed foreign investment.

Despite recent imports of over 500,000 barrels per day of crude oil from Iraq by the United States in March 2024, none of this oil originated from the Kurdistan Region. This discrepancy underscores the significance of finding a resolution to the impasse, especially considering the direct investment of $300 million by the U.S. Government for the development of KRG’s oil and gas sector.