Iraq signs contracts with buyers of Kurdistan Region’s oil: Minister

ERBIL, Kurdistan Region - Iraq’s oil minister on Thursday told Rudaw that they have signed contracts with four companies to buy about half a million barrels of the Kurdistan Region’s crude oil per day.

Iraqi Oil Minister Hayyan Abdul Ghani told Rudaw’s Lamya Rasul in Jeddah that the recent temporary agreement between Baghdad and Erbil over the Region’s oil was "great" adding that there has been progress in talks with the buyers of the Kurdish oil.

"There is an agreement concerning the exportation of the Kurdistan Region's oil between Iraq's oil ministry and the Kurdistan Regional Government. Thanks be to God, in fact, the agreement was great," he said. 

“We have been able to sign contracts with the four companies which are the main buyers of the Kurdistan Region’s oil [to buy] around 400,000 to 500,000 barrels per day,” revealed the minister, noting that the oil will be marketed by the State Oil Marketing Organization (SOMO). 

He also said that they have informed the Turkish authorities that Iraq is ready to export this amount of oil.

"Our brothers from Turkey informed us that they are currently engaged in inspecting the system to make sure the pipeline has not been damaged due to the most recent earthquakes. Therefore, the ball is now in the court of the Turkish side,” he said. 

Tension between Erbil and Baghdad has been high since the Iraqi Federal Supreme Court in February last year deemed the Kurdistan Region’s oil and gas law “unconstitutional”, hence striking the independence of the Region’s energy sector and jeopardizing its industry. 

The International Chamber of Commerce (ICC) on March 23 ruled in favor of Iraq against Turkey regarding exports of Kurdistan Region oil through Turkey’s Ceyhan port, saying Ankara had breached a 1973 pipeline agreement that obliges the Turkish government to abide by instructions issued by Iraq regarding the transport of crude oil exported from Iraq.

The exportation of the Kurdistan Region’s oil to Turkey has been suspended since then. 

Erbil and Baghdad signed a temporary agreement early last month for the exportation of Kurdish oil.

The Kurdistan Regional Government (KRG) exported some 400,000 barrels of crude per day to global markets through Turkey. The Iraqi government also exported about 75,000 barrels of Kirkuk oil per day through the same pipeline. 

The Iraqi oil minister said on Thursday that they are "optimistic" the resumption of the Region's oil exportation.