The Federal Ministry of Oil in the Iraqi government has announced the completion of the necessary measures to resume export of oil produced in the Kurdistan region of Iraq through the Turkish port of Jihan, stressing that this step comes in accordance with the mechanisms specified in the budget law and amending it, and within the ceiling of production scheduled for Iraq in OPEC.
This announcement raised many questions about the nature of the agreement with the Turkish side, especially with regard to the outstanding issues and fines imposed by the International Chamber of Commerce on Türkiye.
The negotiating delegation of the Kurdistan Regional Government responded to the Ministry of Oil announced the invitation of the federal government to implement its obligations before proceeding with the oil export process.
The delegation pointed out that although the region’s government confirmed its commitment to the implementation of the first amendment law of the Federal Public Budget Law, which is related to the re -export of oil produced from the region’s fields to the Turkish port of Jihan through the company “Sumo”, the application of the law requires agreement on several basic points, including:
- Determine the quantities allocated to local consumption in the region, in proportion to the actual needs, similar to the rest of Iraq.
- Establishing a clear and specific mechanism to pay the dues of production and transportation companies to the region’s government, according to what was stated in the law.
Settlement with the Turkish side
Government Counselor Alaa Al -Fahd confirmed in an interview with Al -Jazeera Net that the resumption of exporting the Kurdistan region of oil through the Turkish Jihan port was made after a settlement with the Turkish side, as a result of an international urgency.
Al -Fahd explained that the re -export of oil through the Iraqi -Turkish pipeline and the port of Jihan will take place according to the contracts concluded with the oil companies, noting that there is an amount due to the central government of $ 1.5 billion on the Turkish side, according to the decision of the International Chamber of Commerce, which caused the suspension of oil export for two years.
He explained that it was agreed to make settlements for this amount, thanks to the international urgency and the demand of the United States, with the aim of resuming the export of oil.
Al -Fahd affirmed that the settlement of this amount is necessary, because the export stopping has greatly affected Iraq and the central government, as it provided more than 450 thousand barrels per day, noting that the resumption of export will restore oil production, and support the general budget to fill part of the deficit, as it will contribute to Solving the outstanding problems between the center and the Kurdistan region regarding the delivery of imports, which was stipulated in the agreed budget law.
On Friday, 8 informed sources told Reuters that the administration of US President Donald Trump is pressuring the Iraqi government to allow oil exports to resume from the Kurdistan region of Iraq to global markets through Turkey, or to face sanctions alongside Iran.
While Farhad Aladdin, advisor to the Iraqi Prime Minister, told Reuters – yesterday, Saturday – that Baghdad denies reports that the country may face US sanctions if oil exports are not resumed from the Kurdistan region.
No economic feasibility
An expert in oil affairs Salah Al -Mousawi confirmed that the resumption of export of Kurdistan Region’s oil through the port of Jihan will not provide anything to Iraq, due to the high costs of extraction and export, which makes the price of the source source without value or feasibility for the Iraq treasury, stressing that talking about American pressure that forced Iraq on The return of the export of the region’s oil is far from reality, because Washington is not concerned with anything from this issue.
Al-Mousawi said in an interview with Al-Jazeera Net that the export of oil in the past two years does not represent a loss for Iraq, as it was from the original in the period 2014-2018 any revenues from the export of oil because it was in an informal manner.
Türkiye stopped the pipeline in March 2023 after the International Chamber of Commerce’s decision to compel Ankara to pay $ 1.5 billion, in compensation for Baghdad for unauthorized exports between 2014 and 2018.
And Al -Musawi indicated that the resumption of exporting Kurdistan oil with the costs of production approved by Iraq within the amendment of the budget at $ 16 a barrel to which the costs of exporting it via the port of Jihan and other obligations granted to the region will make this oil the source of the economic feasibility of the Iraq treasury, on the contrary, it may be more harmful On Iraq, if oil prices decrease globally.
https://www.youtube.com/watch?v=-rmovgnvjgy
The announcement of the Iraqi Oil Minister Hayyan Abdul -Ghani – last Monday – the resumption of oil exports from the Kurdistan region of Iraq this week after the approval of the Iraqi parliament on February 2, to an amendment to the budget. For a barrel.
The amendment also requires the Kurdistan Regional Government to transfer its oil production to the state -run Iraqi oil marketing company “Somo”.
Al -Mousawi stressed that the rumors of the talk about Donald Trump’s pressure on Iraq to resume export of the region’s oil is incorrect, because the United States does not need Kurdistan oil exports to compensate for something of production teams if sanctions are imposed on Iran.
In fact – the same speaker adds – that Iraq is the owner of the interest in increasing production, but it is linked to the OPEC production ceils specified by 3 million and 500 thousand barrels per day. As for the actual production of Iraq within its production capacity, it is 4 million and 500 thousand barrels per day, of which one million for internal use.
