Iraq proposes new deal to oil companies for Kurdistan region exports

Iraq has put forward a new proposal to oil companies to resolve the ongoing issue of oil exports from the Kurdistan Region, a source familiar with the negotiations told Channel8.

According to the source within the Ministry of Natural Resources, Baghdad is serious about aligning the price of oil extraction and the nature of contracts with those in the rest of Iraq. The proposal includes an offer to settle all debts owed by the Kurdistan Region to the companies within a decade.

The Kurdistan Regional Government (KRG) and APIKUR have been engaged in discussions with the Iraqi Oil Ministry for two days, aiming to resume oil exports from the Kurdistan Region. Iraqi Oil Minister Hayyan Abdul-Ghani informed the official Iraqi news agency that there has been progress in the negotiations and that talks with Turkey are underway to restart exports to the port of Ceyhan.

“The oil companies have received Iraq’s proposal and indicated that they will discuss it further before responding,” the source added.

The Kurdistan Regional Government reported that the suspension of oil exports has resulted in a loss exceeding $1 billion per month. Additionally, oil companies have estimated the suspension has caused losses of over $17 billion.

The halt in exports followed a ruling by the Paris Arbitration Court on March 25, 2023, which not only suspended oil exports from the Kurdistan Region but also imposed a $1.5 billion fine on Turkey.