Salim Farhoud Hussein, spokesperson for the Iraqi Ministry of Oil, stated that during a meeting between a delegation from the Kurdistan Regional Government (KRG) and the Iraqi government, Prime Minister Ali Faleh al-Zaidi promised the oil companies he would resolve their issues.

A high-level KRG delegation met with al-Zaidi and Iraqi federal officials on Wednesday. Following the meeting, the Prime Minister issued an official directive ordering all international oil firms to immediately resume operations in the Kurdistan Region.

Meanwhile, the KRG Ministry of Natural Resources emphasized that the responsibility for protecting the oil fields of the Kurdistan rests upon the federal government.

Iraq is prioritizing the resumption of oil production in the Kurdistan Region to mitigate financial losses resulting from the shutdown of southern export routes.

al-Zaidi Guarantees Solutions and Addresses Security Matters

Ministry spokesperson Hussein informed Channel8 that international oil companies operating in the Kurdistan Region presented several core demands during the meeting, adding that al-Zaidi promised the oil companies he would resolve all their issues and has asked them to resume operations.

Hussein noted that because these issues are resolvable, international oil companies must first resume operations as requested, having received assurances that all outstanding concerns will be addressed.

The spokesperson revealed that while the companies requested security protection, the Kurdistan Regional Government holds responsibility for securing them.

Iraq to Formulate New Compensation Framework 

Iraq’s federal budget cap of $16 per barrel failed to cover Kurdistan extraction costs. International oil companies refused to produce at this rate, demanding contractually guaranteed higher allowances.

Prime Minister al-Zaidi has promised to resolve disputes by establishing frameworks that compensate international oil companies for their actual operational costs.

APIKUR: Ongoing Security Risks Prevent Resumption 

Speaking to Channel8, Myles Caggins, spokesperson for the Association of the Petroleum Industry of Kurdistan (APIKUR), stated that ongoing security risks from drone and missile attacks remain the primary reason international oil companies have not resumed operations in the Kurdistan Region. 

Caggins added that APIKUR member companies have informed authorities that they will not resume operations under any circumstances until comprehensive security guarantees ensure a safe working environment.