SULAIMANI, Kurdistan Region — The Association of the Petroleum Industry of Kurdistan (APIKUR) acknowledged the discussions between leaders of the Iraqi government and the Kurdistan Regional Government (KRG) as “a potentially positive step” towards the resumption of oil exports through the Iraq-Turkey Pipeline (ITP), it said in a statement.
However, APIKUR claims that representatives from member companies were notably absent from the discussions and have not yet received any official communication regarding the outcomes of the meeting.
APIKUR has outlined several conditions precedent for the full resumption of oil production and exports, emphasizing the need for agreement among Baghdad, Erbil, and APIKUR member companies on any addendums.
Additionally, APIKUR insists on the provision of payment surety for both past and future oil exports, with payments directly remitted to member companies. The association is insistent on maintaining the current commercial terms and economic model of its member companies.
Despite the positive tone regarding the recent talks, APIKUR remains committed to swiftly addressing the remaining issues to facilitate the full resumption of oil production and exports through the ITP, according to the statement.
The association highlights the mutual benefits for all parties involved, as well as the potential positive impact on the people of Iraq.
Under the existing status quo, APIKUR warns, substantial losses persist, with more than $7 billion in export revenue lost since the closure of the pipeline following an arbitration court ruling favoring Iraq in March 2023 against Turkey.
The Iraqi government is “incurring over $1 million per day in financial penalties for not meeting its obligations under the ITP agreement,” according to the statement.
