Disclosure of "huge financial losses" due to the cessation of Kurdistan oil exports[You must be registered and logged in to see this link.] |Today[You must be registered and logged in to see this image.]
Baghdad today - Erbil
Today, Monday (November 20, 2023), oil expert and consultant Kovind Sherwani revealed the details of the re-export of Kurdistan oil through the Turkish port of Ceyhan.
Sherwani said in an interview with "Baghdad Today" that "the contracts concluded between the regional government with companies investing in the field of oil production and also the financial dues of these companies were reviewed."
He added, "The regional federal government, the Turkish side, and oil companies realize the necessity of resuming oil exports and avoiding further financial losses."
He pointed out that "the financial losses since the export of the region's oil stopped on March 25 of this year have exceeded $6 billion, and this is a large number that has harmed the Iraqi economy and budget."
On Saturday (November 18, 2023), economic expert Nabil Al-Marsoumi revealed the most prominent demands of foreign companies operating in the Kurdistan region.
Al-Marsoumi referred in a blog post followed by “Baghdad Today” to “the demands of foreign companies operating in Kurdistan,” indicating that they “refuse to amend the current commercial conditions and the economic model signed between them and Kurdistan after the Federal Ministry of Oil demanded that production-sharing contracts be converted into profit-sharing contracts.”
The economic expert added: "Foreign companies also demanded a guarantee of payment for past and future oil exports, as losses amounted to more than $7 billion in export revenues since the closure of the Iraqi-Turkish pipeline at the end of last March."
Al-Marsoumi noted that it also demanded that “the expected oil sales payments be transferred directly to foreign companies.”
Earlier, Oil Minister Hayan Abdul Ghani said that he expected to reach an agreement with the Kurdistan Regional Government and foreign oil companies operating in Kurdistan to resume oil production from the region’s oil fields within three days.
Abdul Ghani said during a visit to Erbil that Iraq had reached an “understanding” with Turkey regarding the resumption of northern oil exports via the Iraq-Turkey pipeline.
The Norwegian oil company DNO had previously announced that it would refrain from producing oil and exporting it via pipelines in the Kurdistan region until the problem of late payments, estimated at about one billion dollars, was resolved.