2024-03-25T06:26:19+00:00
A-
A
A+
/ The Federal Ministry of Oil responded, on Monday, to a statement issued by the “Association of the Petroleum Industry in the Kurdistan Region (APIKOR),” accusing it of interference in Iraq’s internal affairs.
Federal Oil said, in a statement received by Agency, that “the cessation of oil exports through the Iraqi-Turkish pipeline in March 2023 was due to a Turkish decision that resulted from the issuance of an international arbitration decision by the Paris Chamber of Commerce in favor of Iraq,” indicating that “export did not stop.” Not for a single day as a result of a federal Iraqi decision.”
She added, “After negotiations, Iraq and Turkey reached a point of restarting the pipeline and treating the technical problems that resulted from its closure in the shortest possible time,” explaining that “the federal government is the most affected by the cessation of exports for reasons related to sovereign oil policy and others.”
She pointed out that “the most important reason for stopping exports currently is the refusal of foreign companies operating in Kurdistan to officially hand over their production to the regional government,” stressing that “it is possible to resume exports in a short period if those companies deliver the oil produced from the fields located in the region in accordance with the law.” .
She continued, “We still insist on resuming exports through the Iraqi-Turkish pipeline as soon as possible while adhering to the provisions of the constitution and the law,” stressing that “failure to adhere to the general oil policy approved by the federal government puts Iraq’s reputation and its international obligations at risk.”
She considered that “the Kurdistan Regional Government and companies have not yet received copies of the contracts for the purpose of studying them and arriving at new contracts in accordance with the Constitution and the law,” indicating that “the House of Representatives approved in the budget the Ministry of Oil’s (federal) rate of production costs because neither it nor any other federal body was informed of the contracts.” In the region.”
She pointed out that “there are previous debts amounting to billions of dollars to oil companies in the region, which are amounts unknown to the federal government and not consistent with the borrowing contexts,” explaining that “companies operating in the region continue to refrain from resuming exports except after submitting in advance to their conditions that violate the law, and this is not possible.” Accept it under any circumstances.
Federal Oil said, “The aforementioned statement included blatant interference in Iraqi internal and external sovereign affairs,” calling on “foreign companies wishing to work in Iraq to respect the country’s sovereignty, laws, and judicial decisions, and to adjust their conditions accordingly instead of interfering in sovereign affairs related to Iraq’s foreign policy.”
Yesterday, Saturday, the Petroleum Industry Association of the Kurdistan Region (Epicor) confirmed that the cessation of Kurdistan oil exports to Turkey “has greatly affected international oil companies in the region.”
APICOR said in a statement that the continued suspension of oil exports “caused billions of dollars in losses to the Iraqi government, the Kurdistan Regional Government, and international oil companies.” It stressed that since the export of Kurdistan oil stopped (on March 25, 2023), “neither APICOR nor the member companies have received It contains any proposal from the governments of Iraq and the region to resume oil exports.
She also noted that “all eight Epicor member companies are committed to their contracts with the Kurdistan Regional Government, and continue to negotiate with the parties concerned to reach an agreement and resume oil exports through the pipeline between Iraq and Turkey.”
Epicor spokesman Miles Caggins said that the longer the suspension of exports continues, the more Iraq’s people, economy and investment reputation will suffer.
He added, “The Iraqi government did not take important steps to open the Iraqi-Turkish oil pipeline and resume the export of Kurdistan Region oil, despite Turkey’s announcement in October 2023 that the pipeline was ready.”
The Petroleum Industry Association (Epicor) consists of eight companies operating in the oil sector in the Kurdistan Region, and it exported 50% of the Kurdistan Region’s oil through Turkish territory before stopping exports.
As of March 25, 2023, crude oil exports from Kurdistan fields and Kirkuk Governorate to Turkey via the Turkish port of Ceyhan were halted.
In addition to suspending all oil activities of foreign companies operating in Kurdistan’s fields, after the International Arbitration Tribunal in Paris ruled that these exports were illegal.
This decision comes as a result of a lawsuit filed by the federal government against Turkey in the International Court of Arbitration in Paris in 2014, due to it allowing Kurdistan oil to flow into its territory and export it without Baghdad’s approval.
According to an agreement concluded between Baghdad and Ankara in 2010, the Iraqi Oil Marketing Company (SOMO) is the only entity authorized to export, market and sell Iraqi oil in global markets.
Kurdistan was exporting 450,000 barrels daily to Turkey, to secure the salaries of its employees and its financial revenues, due to the absence of an oil and gas law regulating the management of oil wealth in Iraq.
On April 4, 2023, Erbil and Baghdad reached a temporary agreement until the Iraqi Parliament approved the oil and gas law.
This agreement stipulated that the Kurdistan government would hand over 400,000 barrels per day to SOMO, form a four-part joint committee that would supervise the sale of oil in global markets, open an independent account with the Central Bank to deposit financial revenues, and appoint a representative from the regional government to the position of assistant general manager of SOMO.