After financial disputes, talks to resume Kurdish crude oil exports have been postponed until Thursday

Three sources said that the talks to accelerate a return of oil exports out of Iraq's semiautonomous Kurdistan Region have been postponed until Thursday due to disagreements between oil companies, and the oil ministry. Three sources said that the meeting was originally scheduled for Tuesday, but the initial talks on Sunday failed to reach an agreement on important issues such as how foreign companies in the region will be paid. This forced the two-day delay.

The meeting was convened after the Iraqi oil minister Hayan Abdul-Ghani, and his government, repeatedly stated that the Iraq-Turkey pipe, which had been closed for two years, will resume exports shortly.

The Association of the Petroleum Industry of Kurdistan, which represents eight companies that represent 60% of the production in the region, stated last Friday there was no formal approach to clarify commercial agreements or guarantee payment for past and future sales. Iraq is under pressure from the United States to allow Kurdish crude oil to be exported via Turkey. This would boost supply on the global market, at a time that Washington wants to reduce Iranian crude oil exports to curb Iran's nuke programme.

Seven sources said that a meeting took place on Sunday, but no agreement was reached. One of the main sticking issues had been written guarantees for payment on past and future exports.

A source in the Iraqi oil ministry said that oil companies demanded clarifications on how debts accrued between 2022-2023 would be paid but were told the meeting was to discuss future exports, not past payments.

Sources said that pricing and payment methods were also major sticking points.

In attendance at the Sunday meeting in Baghdad's oil ministry were representatives of international oil companies that operate in Kurdistan, as well as Kurdish energy officials.

One Kurdish official who was briefed on the meeting said that the oil companies and Kurdish officials would confer with the Kurdistan Regional Government (KRG) before relaying Baghdad their final position.

The seven sources also said that companies are still seeking guarantees on their contracts. The Iraqi government made another attempt last week to declare all Kurdish oil production-sharing contracts illegal by filings with a Baghdad Court.

(source: Reuters)