New understandings awaiting a final agreement to resume the export of Kurdistan Region oil

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[size=52]New understandings awaiting a final agreement to resume the export of Kurdistan Region oil[/size]

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06-11-2024
Rudaw reveals the content of the progress and understanding achieved in the tripartite meeting held in Baghdad between the Iraqi Ministry of Oil, the Kurdistan Regional Government delegation, and oil companies.[/size]
[size=45]The parties reached understandings, including changing contracts from participation in oil production to participation in profits, while the Iraqi Oil Ministry pledged to pay off $1 billion in corporate debt within 10 years, and fix the cost of oil production at $8 per barrel.[/size]
[size=45]“Profit sharing”[/size]
[size=45]Undersecretary of the Ministry of Oil, Ali Maaraj, said: “The contracts in the Kurdistan Region are contracts for participation in production, and this is a topic that cannot be discussed in the federal government and the Ministry of Oil, considering that it constitutes a constitutional violation to begin with.”[/size]
[size=45]But he continued: “Our contracts now are close to production sharing contracts, and we call them profit sharing. The Ministry of Natural Resources can reverse its decisions and convert its contracts to profit sharing.”[/size]
[size=45]“Review every two years”[/size]
[size=45]Based on the latest understanding between the Kurdistan Region and Baghdad, the companies handed over the contracts they concluded with the Kurdistan Regional Government to the Iraqi Ministry of Oil.[/size]
[size=45]The contracts will be reviewed every two years according to the changes that occur after signing the final agreement.[/size]
[size=45]In turn, the advisor to the Iraqi Prime Minister, Subhan Al-Mullah Jiyad, confirmed that the Iraqi government, the Prime Minister “personally” and most political forces “are enthusiastic about re-exporting the Kurdistan Region’s oil.”[/size]
[size=45]He noted that “oil prices today are remunerative, and when the export of part of Iraq’s oil, which is the Kurdistan Region’s oil, stops, this is a loss for the entire Iraqi people.”[/size]
[size=45]The parties hope to reach an agreement to resume exporting Kurdistan Region oil in the coming days, according to what the Iraqi Oil Minister expressed after the tripartite meeting.[/size]
[size=45]The Iraqi Ministry of Oil is now awaiting the response of the Kurdistan Regional Government to grant its approval and transform the current understanding into an agreement, especially regarding changing contracts, thus ending the problems that have prevented the resumption of the export of Kurdistan Region oil for more than a year.[/size]
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