BAGHDAD: Iraq, OPEC’s second-largest producer, has given preliminary approval to a plan to resume pipeline oil exports from its semi-autonomous Kurdistan region through Turkiye following delays to a hoped-for restart, sources familiar with the talks told Reuters.
The deal between Iraq’s federal government, the Kurdistan Regional Government and international oil companies could add at least 230,000 barrels per day of fresh supplies at a time OPEC producers are raising output to regain market share.
Iraq exports around 3.4 million barrels of oil per day from its southern ports, but the Kirkuk-Ceyhan pipeline in the north has been shut since March 2023 after an arbitration court ruled that Turkiye should pay $1.5 billion in damages for unauthorized exports between 2014 and 2018. Turkiye is appealing the ruling.
Ankara has since said it is willing to restart exports, but the flows remain suspended because of ongoing legal and political disputes between Baghdad, the Kurdistan Regional Government in Irbil, and the international oil companies.
Iraq’s cabinet has given preliminary approval to a plan to resume exports, and international oil companies operating in Kurdistan have also tentatively agreed, two sources familiar with the talks said.
APIKUR, a group representing firms including Genel Energy , DNO and Gulf Keystone, declined to comment, citing ongoing negotiations.
“Discussions have intensified and we’re closer to a tripartite agreement... than we’ve ever been, as all are showing flexibility,” an executive from one of the international oil companies said.
Under the preliminary plan, the KRG would commit to delivering at least 230,000 bpd to Iraq’s state oil marketer SOMO, while keeping additional 50,000 bpd for local use.
An independent trader would handle sales from Ceyhan using SOMO’s official prices.
For each barrel sold, $16 would be transferred to an escrow account and distributed proportionally to producers. The remainder of the revenue would go to SOMO.
The draft plan also does not specify how or when producers will receive about $1 billion in unpaid arrears, accumulated between September 2022 and March 2023.
Luke Clements, CFO of Genel Energy, told a conference in Oslo last week that there had been significant progress made in drafting agreements to restart pipeline exports.
“But it still needs to get over the line,” he added.
Iraq nears deal to restart pipeline oil exports from Kurdistan to Turkiye, sources say
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Iraq nears deal to restart pipeline oil exports from Kurdistan to Turkiye, sources say
- Ankara has since said it is willing to restart exports, but the flows remain suspended because of ongoing legal and political disputes
- Iraq’s cabinet has given preliminary approval to a plan to resume exports
Jordan, Germany committed to two-state solution
- Chancellor Merz calls for more humanitarian aid to flow into the war-torn Gaza Strip
AMMAN: Jordan’s King Abdullah has warned of “the danger of continued Israeli escalations in the West Bank,” which Israel has occupied since 1967.
King Abdullah received German Chancellor Friedrich Merz during his brief stopover in Jordan on Saturday.
Their discussions in Aqaba focused mainly on the peace process in Israel and the Palestinian territories, AFP reported.
Merz called for more humanitarian aid to flow into the Gaza Strip and for Hamas fighters to lay down their weapons, adding that both Jordan and Germany are committed to a negotiated two-state solution.
“There can be no place for terrorism and antisemitism in this shared future,” Merz said.
Jordan’s royal palace said in a statement that King Abdullah had underlined “the need to commit to implementing all stages of the agreement to end the war and deliver humanitarian aid to all areas of the strip.”
The meeting discussed ways to strengthen the partnership between Jordan and Germany, focusing on the deep-rooted ties between the two countries, Jordanian news agency Petra reported.
King Abdullah emphasized the importance of expanding cooperation in various domains, including the economic and defense sectors, and continuing to coordinate in support of efforts to achieve stability in the region, according to Petra.
The leaders highlighted the need to pursue a “political horizon to achieve a just and comprehensive peace in the region.”
Chancellor Merz expressed Germany’s readiness to strengthen cooperation with Jordan in various sectors.
The Syrian Arab Republic’s Sana news agency reported that the two leaders discussed ways to support Syria and Lebanon in maintaining their security, stability, and sovereignty.
They stressed the importance of respecting the sovereignty of regional countries and reviewed key developments in the Middle East.
Deputy Prime Minister and Foreign Minister Ayman Safadi had previously affirmed that Jordan continues to support Syria after years of war and destruction, expressing hope for a stable and secure future that ensures Syria’s territorial unity, Sana added.
King Abdullah separately met with Kaja Kallas, EU high representative for foreign affairs and security policy and European Commission vice president on Sunday to discuss ways to strengthen cooperation within the framework of the strategic and comprehensive partnership between Jordan and the EU.
The meeting at Basman Palace covered the importance of building on available economic opportunities, particularly through the Jordan-EU Summit, scheduled to be held in Amman in January 2026, as well as the joint economic forum scheduled for next year, with participation from investors on both sides.
The meeting also touched on regional developments and the need to achieve comprehensive calm and preserve the sovereignty of states.
The two sides emphasized that the two-state solution is the only way to achieve just and comprehensive peace.
The king reiterated the need to adhere to the terms of the agreement to end the war in Gaza and ensure the flow of relief aid, as well as to stop unilateral measures against Palestinians in the West Bank.
For her part, Kallas emphasized the importance of the EU’s partnership with Jordan and the shared commitment to deepen cooperation in various fields, noting Jordan’s pivotal role in the region.
