Iraqi Ministry of Oil has announcement for Kurdistan Region and international oil companies

Exporting oil from Kurdistan Region is very important for the Iraqi’s entire oil industry, 400.000 barrels are produced per day in the region.
Association of Petroleum Industry of Kurdistan APIKUR’s Spokesperson (Photo: Kurdistan 24)
Association of Petroleum Industry of Kurdistan APIKUR’s Spokesperson (Photo: Kurdistan 24)

ERBIL (Kurdistan24) – The APIKUR Spokesperson Myles Caggins revealed Kurdistan 24 that the Iraqi Ministry of Oil, in an announcement, invites the international oil companies and Kurdistan Region for a meeting, also they want for the oil export to reopen quickly.  

According to the Myles Caggins’ statement, it is the first time since January, the Iraqi Ministry of Oil (IMO) comes forward to invite the APIKUR and international oil companies (IOCs) to discuss the terms and any changes in the contract.

Read More: Iraqi Oil Ministry calls for immediate resumption of oil exports from Kurdistan Region

The APIKUR sent a response to IMO willing to attend the meeting, as well as the IOC are ready to resume exports through the pipelines.

Caggins emphasized “After APIKUR’s statement on Tuesday, we heard a message from Baghdad agreeing to meet up, we are open to any discussions and new contracts, but any changes must include APIKUR members and KRG”

Read More: APIKUR emphasizes tripartite dialogue for resumption of oil exports

Caggins couldn’t give any details in regards because the international companies have not seen any formal invitation, paperwork or agenda proposed about the new contract or new terms and conditions. APIKUR’s Spokesperson rather focused on all the 3 groups must work together: Baghdad, Erbil and the oil companies. “The APIKUR members are ready to review proposals, do negotiations and discuss any proposed contract and new terms and conditions,” Caggins added further.

Caggins stated “The companies are, currently, doing local sales, and to local refineries, but we prefer to have exports through the Iraq-Turkey pipeline,”. He believes that oil from Kurdistan Region is important for the Iraqi’s entire oil industry, at present oil is being exported through the south of Iraq. Yet, in Kurdistan Region 400.000 barrels are produced per day, that indicates to having the second pathway for oil in the north (Kurdistan Region), to depart Iraq.  

“OPEC meetings will happen on Jun 2nd, the oil from Kurdistan Region must be included in Iraq’s OPEC’s quotas,” Caggins continued. However, the APIKUR members have not received any formal written agreement, but there is a meeting and discussion proposed by the IMO, and Caggins is pessimistic about this forthcoming step.

Caggins added “We look forward to the meeting, review new proposals and each company, must make their own decision, each has individual separate contract with DNO, HKN”

Background regarding oil export:  

The Kurdistan Region’s Prime Minister Masrour Barzani made efforts and talks with the White House DC, State Department and members of congress concerning pipeline reopening.  

Read More: PM Barzani visit to Washington DC important, at a critical time, says KRG Rep. to the US

US Ambassador’s visit to DC, and Assistant Secretary for Energy’s visit to Erbil have had an immense impact on Baghdad to get the oil pipeline reopened.

Read More: PM Barzani, US Assistant Secretary Pyatt highlight energy cooperation in Erbil

 The cost estimates for each site production provided by the audits and analysis surveys in Kurdistan Region and Federal Iraq. The APIKUR's Spokesperson revealed to Kurdistan24, APIKUR members have invested $10 billion to develop the oil industry in Kurdistan Region since 2005, it is directly in charge of hiring more 2200 people and influencing more than 15000 jobs in KR.