Iraq faces $20 billion in losses as Kurdistan’s oil exports remain suspended, with production dropping 60% amid legal disputes.
After multiple reviews, Iraq’s Court of Cassation ruled that the contracts between the Ministry of Natural Resources and oil companies are legally valid. A former Iraqi MP also confirmed this decision.
On March 19, 2023, the export of Kurdistan’s oil via the Ceyhan pipeline to Turkey was halted following a ruling by the Paris Arbitration Court. The Association of the Petroleum Industry of Kurdistan (APIKUR) stated its support for resuming exports through the Ceyhan port, emphasizing that Iraq loses $1 billion per month due to the shutdown.
After years of disputes over Kurdistan’s oil, the Kurdistan Regional Government’s (KRG) Ministry of Natural Resources announced that following multiple court hearings and legal challenges regarding the Karkh Court’s rulings—initially issued in line with the Iraqi Federal Supreme Court’s decision against Kurdistan’s oil and gas law—the Karkh Court, after extensive review, ultimately reversed its previous rulings in favor of the Ministry of Natural Resources.
The Ministry of Natural Resources stated that despite continued objections from Iraq’s federal Ministry of Oil, the Court of Cassation upheld the Karkh Court’s decision, reaffirming the legality of the agreements between the Ministry and oil companies in Kurdistan.
Earlier, KRG spokesperson Peshawa Hawramani noted that Prime Minister Masrour Barzani had maintained continuous discussions with Iraq’s Prime Minister, leading to positive outcomes. He emphasized that Kurdistan never blocked the resumption of oil exports.
The KRG also stressed the importance of oil companies in this process, as they have binding agreements with the Kurdistan Regional Government. Their approval is necessary since legal contracts exist between both sides.
Hawramani clarified that Iraq’s allocation of $16 per barrel for Kurdistan’s oil production costs is being reviewed as part of discussions to restart exports.
Resuming Kurdistan’s oil exports would reintegrate the Kurdistan Region into global energy markets, strengthen international ties, and restore the rights of foreign investors in Kurdistan.
He concluded, “Due to the suspension of Kurdistan’s oil exports, Iraq has suffered nearly $20 billion in losses, while production rates have declined by 60%.”
The Kurdish Globe