Foreign firms in Kurdistan responsible for oil delay – minister

Iraq’s oil ministry has on Monday held foreign firms in Iraqi Kurdistan responsible for the delay in resuming crude exports from the region, according to Reuters.

The ministry stated that these companies, in conjunction with Kurdish authorities, have not submitted contracts to the federal oil ministry for revision and issuance of new contracts compliant with the constitution and laws.

Meanwhile, the Iraq-Turkey oil pipeline, once a key conduit handling 0.5 per cent of global oil supply, remains inactive due to legal and financial obstacles.

Crude production in the region, estimated at 200,000-225,000 barrels per day (bpd), was reportedly conducted without ministry knowledge or approval.

Iraq pledged to cut crude exports to 3.3 million bpd to compensate for exceeding its OPEC+ quota, potentially reducing shipments by 130,000 bpd. Despite rising oil prices, OPEC+ emphasises adherence to production cuts.

The ministry warned that non-compliance with federal oil policies could harm Iraq’s reputation and international commitments.

Turkey ceased oil flows on March 25, 2023, following an arbitration ruling stating it violated a 1973 treaty by facilitating oil exports from Kurdistan without Iraq’s consent.