The Kurdistan Region’s Ministry of Natural Resources has sent a new letter to Baghdad, outlining proposals and information regarding oil production levels as well as the demands of the APIKUR - Association of the Petroleum Industry of Kurdistan companies.

According to the information provided, oil production in the Kurdistan Region has reached 270,000 barrels per day.

Production Levels and Erbil’s Proposal

In the new proposal submitted to Iraq’s Ministry of Oil, the Kurdistan Region Government (KRG) revealed that 40% of total oil production, around 110,000 to 120,000 barrels per day, is produced by local companies.

The Region has expressed readiness that, after setting aside 50,000 barrels per day for domestic needs, it can deliver 60,000 to 70,000 barrels per day to SOMO (Iraq’s State Oil Marketing Organization).

APIKUR’s Demands and Resolving Disputes

Reports indicate that “nearly 90% to 95% of the problems hindering the export of Kurdistan’s oil have been resolved.” However, the Ministry reiterated the demands of the APIKUR - Association of the Petroleum Industry of Kurdistan, whose member companies produce about 60% of the Region’s oil and are seeking financial guarantees from Baghdad.

According to Channel8's sources, the KRG has stated it is prepared to resume exports without including APIKUR - Association of the Petroleum Industry of Kurdistan’s share of oil, but has also notified Baghdad that “if the demands of the oil companies are met, then the full 270,000 barrels per day (after deducting 50,000 for domestic consumption) can be delivered.”

Delays and Underlying Causes

Although Iraq’s federal budget law allocates $16 per barrel for the costs of production and transportation of Kurdistan’s oil, APIKUR - Association of the Petroleum Industry of Kurdistan companies are demanding additional financial guarantees. This dispute has so far prevented exports from restarting.

If the Kurdistan Region proceeds with oil exports without APIKUR - Association of the Petroleum Industry of Kurdistan’s 60,000–70,000 barrels per day, the Iraqi government would need to rely on domestic refineries. The issue, however, is that if daily exports fall below 100,000 barrels per day, the cost of transporting oil through the Ceyhan pipeline would rise, making exports economically unviable.