Baghdad Invites Foreign Oil Companies for Talks on Kurdistan Oil Contracts
The press release states the talks will review APIKUR's oil contracts and seek agreements to enhance oil field development using global best practices.
ERBIL (Kurdistan24) – The Iraqi federal Ministry of Oil has invited international oil companies operating in the Kurdistan Region under the Association of the Petroleum Industry of Kurdistan (APIKUR) framework, along with the Kurdistan Regional Government’s Ministry of Natural Resources, to a meeting in Baghdad on Tuesday, Mar. 4.
According to a press release issued by the ministry on Saturday, the discussions will focus on reviewing existing contracts and reaching mutual agreements aimed at enhancing oil field development through global best practices in a manner that serves Iraq’s national interests.
The invitation comes amid prolonged negotiations between Baghdad and Erbil regarding the legal and operational framework governing oil production and exports in the Kurdistan Region.
The issue has been a point of contention for years, particularly after Iraq’s Supreme Federal Court ruled in 2022 that the Kurdistan Region’s independent oil sales were unconstitutional. The ruling led to increased federal oversight of Kurdish oil exports and contractual agreements, creating uncertainty for investors and energy firms operating in the region.
Despite several rounds of negotiations, a sustainable agreement on oil revenue sharing and contract terms has yet to be reached. The Kurdistan Regional Government (KRG) has long sought to maintain a degree of autonomy over its natural resources, while Baghdad insists on centralizing oil management under federal jurisdiction.
The suspension of Kurdistan’s oil exports through Turkey’s Ceyhan port in March 2023, following a ruling at the International Chamber of Commerce (ICC) arbitration tribunal, further exacerbated economic pressures on the KRG. The halt in exports, which previously accounted for nearly 450,000 barrels per day, has led to significant financial shortfalls, impacting the region’s ability to pay public sector salaries and fund development projects.
Recent developments, including ongoing discussions between Iraqi and Turkish authorities on resuming oil flows and proposed amendments to Iraq’s national oil law, suggest that both Baghdad and Erbil recognize the urgency of resolving these disputes. However, questions remain regarding revenue-sharing mechanisms, the role of foreign investors, and the future of production-sharing agreements signed by the KRG with international oil firms.
Tuesday’s meeting in Baghdad could be a critical step in addressing these challenges and creating a more stable investment environment for energy companies in Iraq and the Kurdistan Region. Stakeholders will be watching closely to see if the discussions yield tangible progress toward a long-term resolution.
The latest push to reopen Kurdistan's oil exports comes in the wake of a senior-level discussion between Iraqi Prime Minister Mohammed al-Sudani and U.S. Secretary of State Marco Rubio. During what was described as a "very frank conversation," Rubio emphasized Washington’s insistence on Iraq achieving energy independence, ceasing its reliance on Iranian gas and electricity imports, and ensuring fair payment to U.S. firms operating in the country.
Additionally, the U.S. has made it clear that all Iraqi oil flows, including those from Kurdistan, must resume through the Iraq-Turkey Pipeline (ITP). Failure to comply, Rubio warned, could result in sanctions and a withdrawal of U.S. investment.
The urgency of these discussions is further heightened by political resistance in Baghdad, with Iraqi lawmakers criticizing U.S. involvement in the dispute while Washington continues to advocate for a sustainable agreement between Erbil and Baghdad to stabilize Kurdistan’s oil production and exports.