Latest news with #MylesCaggins
Rudaw Net
2 days ago
- Business
- Rudaw Net
Baghdad pledges non-interference in oil firms as KRG export resumption nears: Sources
Also in ECONOMY Iraq gold surges, inflation dips as deficit grows: Central Bank Fate of trade on Iraqi ports as Iran-Israel war escalates Erbil, Baghdad trade accusations over financial disputes Iraq close to Saudi, Emirati solar deals: Electricity ministry A+ A- ERBIL, Kurdistan Region - The Iraqi government has agreed to refrain from modifying the contracts of international oil companies operating in the Kurdistan Region, senior sources told Rudaw on Tuesday, with the Region's long-stalled oil exports on the cusp of resumption. A joint committee is set to be formed between Erbil and Baghdad to restart oil exports with all parties awaiting the results of a crucial Coordination Framework, Iraq's ruling coalition, meeting expected to be held on Tuesday night. 'The meeting will be decisive in resolving disagreements about oil and salaries,' a senior source in Baghdad told Rudaw, on the condition of anonymity. Another source from the Association of the Petroleum Industry of Kurdistan (APIKUR) said that they have obtained guarantees regarding their demands for oil production and export. 'Guarantees have been given that the consulting company that estimates the costs of oil production and transportation will not make changes to the contracts during its work period,' the source told Rudaw. In a statement, APIKUR on Tuesday hailed the expedited efforts by the federal government and the Kurdistan Regional Government (KRG) to resume oil exports. International Oil Companies (OICs) 'reiterated that they are prepared to immediately resume exports through the ITP [Iraq-Turkey pipeline] once binding agreements are in place that ensure payment certainty for such exports which reflect each IOC's existing, legally valid contractual terms as well as resolution of the outstanding payment arrears to be agreed with each company,' the oil association said in a statement. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been halted since March 2023 when a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin exporting oil independently in 2014. 'APIKUR member companies stand ready to resume exports as soon as written agreements are executed that honor our existing contracts which are governed by international law,' the statement cited the association's spokesperson Myles Caggins as saying, reiterating that existing contracts 'must be honored in every respect.' Under the 2025 budget law, the KRG is required to deliver 400,000 barrels per day to the State Oil Marketing Organization (SOMO). On Saturday, Iraqi Oil Minister Hayyan Abdul Ghani attributed the delay in restarting exports to new demands from Erbil for higher volumes of oil for domestic use, explaining that while the KRG initially agreed on 46,000 barrels per day for internal consumption, it is 'now requesting it to be 65,000, thus violating the budget law.' The halt in exports and disputes with Baghdad have put an enormous financial strain on the KRG, which has lost more than $25 billion in oil revenues. Erbil is not able to pay its civil servants and is dependent on funds from Baghdad. In May, Iraq's federal finance ministry halted all budget transfers to the KRG, including payments for public employee salaries, claiming the KRG had exceeded its share of federal budget funds and failed to deliver its oil to SOMO. Public sector workers have not been paid since. Hastyar Qadir contributed to this report.
Rudaw Net
09-05-2025
- Business
- Rudaw Net
Oil association urges renewed efforts to resume Kurdish exports
Also in ECONOMY Iraq tells Turkey it needs more time to restart Kurdish oil exports Dana Gas says to begin production at Chamchamal field next year KRG calls for restart of Kurdish oil exports 'as soon as possible' KRG transfers control of digital salary payment program to finance ministry A+ A- ERBIL, Kurdistan Region - Oil producers in the Kurdistan Region on Sunday called for increased efforts to resume the long-halted Kurdish oil exports through the Iraq-Turkey pipeline (ITP). In a statement, the Association of the Petroleum Industry of Kurdistan (APIKUR) said that their latest meeting with the Iraqi government and the Kurdistan Regional Government last week 'did not result in any agreements.' 'The GoI [Government of Iraq] continues to publicly express the importance of oil exports through the ITP but engagements thus far have been limited and unproductive. APIKUR calls for redoubling of efforts to find mutually beneficial solutions,' the statement said. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023 after a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin exporting oil independently in 2014. Despite ongoing talks between Erbil, Baghdad, Ankara, and oil producers - with added pressure from the United States - the exports remain stalled, with their suspension costing Iraq billions of dollars in revenue. 'APIKUR member companies have repeatedly proposed solutions that satisfy, both, Iraq's Budget Law and comply with international oil company contracts which have been validated in Iraq's courts,' said APIKUR spokesperson Myles Caggins. 'We regret the lack of progress, nevertheless we will continue to push for a resumption [of] oil exports.' The oil association also lamented that 'no substantial discussions' have taken place with Baghdad and Erbil on their proposals for payment mechanisms, stressing that multiple recommendations have gone unaccepted. 'APIKUR member companies remain ready to immediately resume exports through ITP once binding agreements are in place that ensure payment certainty for such exports in like with each IOC's existing contractual terms,' the statement added. In early April, APIKUR said that their investments have been 'fundamentally harmed' by the closure of the pipeline and that they are in a 'hurry' to resume the oil exports, for which they have been 'at forefront to push negotiations with Baghdad.' In early February, the Iraqi parliament approved amendments to the federal budget law, authorizing a $16-per-barrel fee for production and transport costs in the Kurdistan Region - a move seen as a crucial step toward restarting exports. The amendments also require both the federal government and the KRG to establish an international technical consultancy within 60 days to assess production and transportation costs for oil fields in the Kurdistan Region. If an agreement cannot be reached, the federal council of ministers will appoint the consultancy.
Rudaw Net
09-05-2025
- Business
- Rudaw Net
KRG calls for restart of Kurdish oil exports 'as soon as possible'
Also in ECONOMY Iraq tells Turkey it needs more time to restart Kurdish oil exports Dana Gas says to begin production at Chamchamal field next year Oil association urges renewed efforts to resume Kurdish exports KRG transfers control of digital salary payment program to finance ministry A+ A- ERBIL, Kurdistan Region - The Kurdistan Region's Council of Ministers said on Wednesday that it has met its obligations for resuming the Region's oil exports, calling on the relevant authorities in Erbil and Baghdad to restart the process 'as soon as possible.' The Council of Ministers held its weekly meeting in Erbil on Wednesday to discuss a range of issues, particularly the Kurdish oil exports which have been suspended for over two years. 'The Council of Ministers reaffirms its unchanging position in support of negotiations and discussions between both the Oil Ministry and Natural Resources Ministry for the soonest possible resumption of oil exports,' read a statement from the Kurdistan Regional Government (KRG). 'To this end, the Council of Ministers calls on the [Kurdish] Ministry of Natural Resources, the Federal Oil Ministry, oil companies, and [Iraq's State Oil Marketing Organization] SOMO to continue coordination and negotiation in order to resolve the issues and reach an agreement as soon as possible to resume Kurdistan Region's oil exports and to prevent further financial losses to the general treasury, which have already exceeded tens of billions of dollars,' it added. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023, after a Paris-based arbitration court ruled in favor of Baghdad, stating that Ankara had violated a 1973 pipeline agreement by allowing Erbil to export oil independently. Iraq's foreign minister said on Tuesday that Baghdad is seeking to resume Kurdish oil exports through the Iraq-Turkey pipeline and will 'make every effort' to do so. Myles Caggins, spokesperson for the Association of the Petroleum Industry of Kurdistan (APIKUR), an umbrella group of international oil companies operating in the Kurdistan Region, told Rudaw on Tuesday that Baghdad must provide written documentation of the international consultant's audit of production and costs. "I want to make APIKUR's position clear. Our companies are ready to resume oil exports when we have agreements, and we need agreements for sales and also an agreement for the international consultant that is required by Iraq's budget law," he added. In early February, the Iraqi parliament approved amendments to the federal budget law, authorizing a $16-per-barrel fee for production and transport costs in the Kurdistan Region - a move seen as a crucial step toward restarting exports. The amendments also require both the federal government and the KRG to establish an international technical consultancy within 60 days to assess production and transportation costs for oil fields in the Kurdistan Region. If an agreement cannot be reached, the federal council of ministers will appoint the consultancy.
Asharq Al-Awsat
30-03-2025
- Business
- Asharq Al-Awsat
Western Companies Accuse Baghdad, Erbil of Blocking Kurdistan Oil Exports
Despite the renewed optimism over the past two weeks regarding the potential resumption of Kurdish oil exports to the Turkish port of Ceyhan, a new setback revealed by oil companies operating in the region has pushed negotiations back to square one. APIKUR, a grouping of eight oil firms operating in Iraqi Kurdistan, criticized both the federal government in Baghdad and the regional government in Erbil for failing to present any 'proposal' to restart oil exports. This has raised further doubts about the prospects of resuming exports, which have been halted since March 2023. Despite criticism directed at both Baghdad and Erbil, a Kurdish affairs researcher insists that 'influential factions in Baghdad' are obstructing the resumption of oil exports. The coalition of eight Western oil companies that make up APIKUR had entered investment contracts with the Kurdistan Regional Government. These companies now face legal challenges with Baghdad, particularly following a 2022 Federal Court ruling declaring the Kurdistan Region's oil and gas law unconstitutional, which led to a significant crisis with the consortium of companies operating in the region. The Federal Ministry of Oil had previously accused APIKUR of 'interfering in both internal and external Iraqi affairs' through its statements. In a statement on Saturday, APIKUR said that despite the halt in oil exports since 2023 through the pipeline between Iraq and Türkiye, neither the group nor its members have seen any proposal from either the Iraqi government or the Kurdistan Regional Government that would lead to the resumption of exports. APIKUR spokesperson Myles Caggins emphasized that the association continues to focus on collaborating with all stakeholders to fully restore oil production and exports through the Iraq-Türkiye pipeline. The statement also pointed out that the Iraqi government has not taken the necessary actions to reopen the pipeline and enable oil exports from the Kurdistan Region of Iraq, despite Türkiye announcing in October 2023 that the pipeline was ready for operation and oil export. APIKUR had previously welcomed the Iraqi Cabinet's proposal to amend Article 12 of the Federal Budget Law regarding oil production costs in the region, seeing the amendment as 'an opportunity to meet its demands.' However, the association now sharply criticizes both Baghdad and Erbil, stating that previous positive meetings with representatives from both governments have not resulted in any real progress toward reopening the Iraq-Türkiye pipeline.
Rudaw Net
06-03-2025
- Business
- Rudaw Net
APIKUR demands payment guarantees, contract adherence to resume Kurdish oil exports
Also in ECONOMY Oil companies say $16 fee set by Baghdad for Kurdish oil 'temporary' 'Nothing achieved' in Baghdad meeting over Kurdistan oil exports: Source Lack of formal deals hinders resumption of Kurdistan oil exports: Firms Meeting between Baghdad, Erbil, oil producers canceled: Source A+ A- ERBIL, Kurdistan Region - An association of oil producers operating in the Kurdistan Region stated on Thursday that any resumption of Kurdish oil exports must be contingent upon guarantees from both Erbil and Baghdad for export payments, as well as adherence to commercial terms outlined in contracts with the Kurdistan Regional Government (KRG). The Association of the Petroleum Industry of Kurdistan's (APIKUR), an umbrella group of eight international oil firms, is ready to 'finalize the agreements needed to resume oil exports,' said the oil association's spokesman Myles Caggins in a statement. He emphasized that 'the commercial terms and economic model of our [production sharing contracts] PSCs must be upheld,' stressing that the member companies' existing contracts remain legally valid. APIKUR also highlighted the necessity of formal sales and lifting agreements for future oil exports, in addition to written guarantees for the payment of 'oil delivered but not paid between October 2022 and March 2023.' Payments must be made 'directly and transparently' to the companies without intermediaries or undue delays, the association added. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline were halted in March 2023 following a ruling by a Paris-based arbitration court in favor of Baghdad, which claimed Ankara had violated a 1973 pipeline agreement by permitting Erbil to independently export oil starting in 2014. The Iraqi parliament in early February approved amendments to the federal budget law, which authorized a $16 per barrel production and transport fees for Erbil and international oil companies (IOCs) operating in the Kurdistan Region. This move is seen as crucial to restarting Kurdish oil exports. The amendments also stipulated that the Iraqi federal government and the KRG must establish an international technical consultant body within 60 days to assess production and transportation costs for oil fields in the Kurdistan Region. If no agreement is reached, the federal council of ministers will appoint the body. APIKUR stated on Thursday that 'the work scope of an independent technical consultant, as required by the revised budget law, should be agreed upon by all parties and strictly limited to verifying that oil sales invoices align with PSCs terms.' The association added that it has already recommended consultants to KRG officials from renowned 'independent international firms.' 'The international consultant will review the documents, financial records, and contracts from each oil company, and provide a true cost,' Caggins told Rudaw on Thursday, stressing the need for a clear mandate to avoid unnecessary delays. APIKUR's remarks notably come amid growing uncertainty and cautious optimism about the potential resumption of Kurdish oil exports. In its statement, the association expressed readiness to activate the Iraq-Turkey pipeline used to transfer Kurdish oil, but added that 'additional meetings' are needed to finalize the agreements. Despite US pressure, negotiations between Iraqi and Kurdish officials, as well as IOCs, have yet to yield concrete results. A meeting between Iraqi and Kurdish officials, along with IOCs, was held in Baghdad on Thursday, but ended without any agreements, according to one of the attendees, who spoke to Rudaw English on the condition of anonymity. 'Nothing [was] achieved and there was no breakthrough,' the source said, adding that the participants 'agreed to form two committees between Erbil and Baghdad to address urgent issues, including debts, assurances of payment, and the scope of the third party consultant.' The Iraqi oil ministry had initially invited the KRG's natural resources ministry and APIKUR for a meeting in Baghdad on Tuesday. However, the meeting did occur as planned, and instead, unscheduled meetings were held on Saturday and Thursday. Importantly, a senior US diplomat attended Thursday's meeting as Washington is intensifying its pressure on Baghdad to quickly resume Kurdish oil exports, according to the well-placed source.
