Iraqi Ministry of Oil Denies Apikur’s Claims, Calls for Urgent Negotiations on Kurdistan Region Oil Exports

Peregraf

The Iraqi Ministry of Oil has rejected claims made by the Association of the Petroleum Industry of Kurdistan (Apikur) in a March 28 statement, asserting that the government is unwilling to negotiate a solution for oil contracts between Apikur companies and the Kurdistan Regional Government (KRG).

In a statement, the ministry reaffirmed its commitment to implementing the recent amendments to the General Budget Law, adopted on February 2, 2025, to enable the resumption of crude exports through the Iraq-Turkey pipeline (ITP) as soon as possible.

“The amendment stipulates that the Federal Ministry of Finance will compensate the Kurdistan Regional Government for the costs of producing and transporting crude oil to the Iraqi oil marketing company (SOMO) or the Ministry of Oil,” the statement explained. Additionally, an international consultant is tasked with assessing fair production and transportation costs for each oil field, which will determine payments from Baghdad to Erbil. Meanwhile, a temporary compensation mechanism will be applied to ensure financial flows to the KRG during this assessment process.

The ministry highlighted the Iraqi government’s “serious and concrete steps” to prove its good faith in negotiations and expedite oil exports via the ITP. It emphasized that the government is committed to safeguarding national resources and implementing “legal and sustainable solutions” to the long-standing oil dispute.

Furthermore, the ministry reiterated Prime Minister Mohammed Shia Al-Sudani’s position that “selling oil outside SOMO’s framework constitutes an infringement on the rights of the Iraqi people.” Al-Sudani has publicly defended the recent budget law amendments, arguing that they enhance transparency and governance in oil resource management.

The ministry also expressed frustration over obstacles in negotiations, stating: “Each time progress is made, unrealistic and extra-legal demands hinder a final settlement, despite the government’s continuous efforts to reach a just solution.”

Calling for an urgent meeting with all concerned parties, the ministry insisted that any negotiations must be based on the amended budget law to establish a clear mechanism that upholds Iraq’s rights while honoring its commitments to investors.

“The primary objective is to resume oil exports through the pipeline immediately, in a lawful and secure manner, while ensuring the rule of law and protecting national resources from illegal exploitation,” the ministry concluded.