You are using an outdated browser. For a faster, safer browsing experience, upgrade for free today.

News

Home  → News  → Non-renewable Energy  → Iraqi accusations against foreign companies of delaying Kurdistan oil exports

Iraqi accusations against foreign companies of delaying Kurdistan oil exports

March 25, 2024

The Iraqi Ministry of Oil announced that foreign companies operating in the Iraqi Kurdistan region bear part of the responsibility for delaying the resumption of crude oil exports from the region. The Ministry explained in a statement that foreign companies did not submit their contracts to the Federal Ministry of Oil for review and issuance of new contracts that comply with the constitution and the law, noting that This hinders the resumption of oil exports from the Kurdistan region.

The Iraqi accusations against foreign companies come in the context of the efforts made by the federal government to impose its control over oil exports from the Kurdistan region. Oil exports are a major source of income for Iraq, and their resumption from the Kurdistan region contributes to supporting the Iraqi economy.

The Iraqi government faces great challenges in reopening the oil pipeline between Iraq and Turkey, especially in light of the political differences between Baghdad and Erbil.

The Iraq-Turkey oil pipeline, which transported about 0.5 percent of the world's oil supply, has been closed for a year after the International Chamber of Commerce ruled that Turkey violated the terms of the 1973 agreement by facilitating oil exports from the semi-autonomous Kurdistan region without government approval. Iraqi Federal Council in Baghdad.

Reports from the Organization of the Petroleum Exporting Countries (OPEC) and secondary international sources showed that crude production in the Kurdistan region ranges between 200,000 and 225,000 barrels per day without the knowledge or approval of the Iraqi Ministry of Oil.

Iraq confirmed that it will reduce its crude oil exports to 3.3 million barrels per day in the coming months. To compensate for any increase recorded in January and February above its quota determined under the OPEC+ alliance agreements.

These accusations indicate the Iraqi government’s keenness to impose its control over oil exports from the Kurdistan region, and to ensure Iraq’s commitment to its international obligations. The issue of oil exports from the Kurdistan region raises international concerns about the stability of global oil supplies.