The Iraqi Ministry of Oil called for an urgent meeting with its counterpart in the Kurdistan region, along with international companies working in the field of oil and gas. This is with the aim of reaching an agreement on accelerating production processes and resuming oil exports.

This call comes in the wake of the Iraqi Federal Court’s decision in February 2022, which ruled that the oil and gas law in the Kurdistan region was unconstitutional. Which led to the cessation of oil exports from the region through the Turkish port of Ceyhan.

The Petroleum Industry Association of Kurdistan (APICOR) expressed its readiness for its member companies to return to production and export operations, stressing the need for them to obtain guarantees to pay the price of previous and future sales directly from the buyer, while maintaining current commercial conditions.

Resolving the dispute between Baghdad and Ankara regarding the export of Kurdish oil through the Turkish port of Ceyhan is necessary to restart oil exports from the Kurdistan region.

The oil export crisis is weighing heavily on the Iraqi economy. The losses resulting from the cessation of exports are estimated at about $20 billion annually. This crisis also constitutes a burden on the Iraqi government’s budget and hinders the achievement of its development goals.

The upcoming meeting between the Iraqi government and the Kurdistan Region is an important step towards resolving the oil export crisis, but there are still many challenges to overcome, including ensuring payment for past and future sales, maintaining current trade terms, and resolving the dispute between Baghdad and Ankara.