ERBIL, Kurdistan Region - Iraq will not sign new contracts with oil companies operating in the Kurdistan Region because existing agreements remain valid, the Iraqi oil ministry's spokesperson said on Saturday.
"There are no new contracts to be signed, as the previous contracts between the Kurdistan Region and foreign companies remain in effect," Iraqi Oil Ministry spokesperson Salim al-Rikabi told Rudaw.
The remarks come amid ongoing efforts by Baghdad and Erbil to resume oil exports from the Kurdistan Region at full capacity and restore production levels following disruptions caused by security concerns and disputes over payment mechanisms.
Addressing the reasons behind the suspension of operations by some oil companies in the past, Rikabi said the companies had withdrawn due to security concerns.
"The companies had suspended operations due to security reasons, and a meeting was held with them under the chairmanship of the prime minister [Ali al-Zaidi] to urge them to immediately resume work and to address all obstacles facing them," he said.
One of the major sticking points between Erbil and Baghdad has been the cost of oil production in the Kurdistan Region.
Rikabi said the $16 per barrel figure included in Iraq's federal budget law was intended only as an advance payment.
"The $16 amount is stipulated in the federal general budget as an advance payment until the international consultant tasked with calculating production and transportation costs completes its work,” he noted.
The issue of export routes has also gained greater significance following the outbreak of conflict involving Iran, the United States, and Israel on February 28, which has complicated Iraq's oil exports through the Strait of Hormuz. Iraq is currently exporting most of its oil through the Kurdistan Region's pipeline to Turkey's port of Ceyhan.
