The organization that represents the international oil companies (IOCs) in Iraqi Kurdistan has clearly stated that its members won’t be able to export oil through pipelines until there is a concrete plan on how the IOCs will be paid for the oil they have sold in the past and will sell in the future. Currently, the IOCs are owed almost $1 billion in unpaid arrears.
The Iraqi-Turkish pipeline (ITP) is ready to resume operations, according to a statement by the Turkish Minister of Energy and Natural Resources this week. However, APIKUR has stated that the production sharing contracts (PSCs) follow English law and any disputes will be resolved through international arbitration at the London Court of International Arbitration.
DNO, Genel Energy, Gulf Keystone Petroleum (GKP), HKN Energy, and ShaMaran Petroleum are members of APIKUR.
Full statement from APIKUR:
APIKUR comments on Turkish Energy Minister’s statement regarding Iraq-Turkiye pipeline resumption
The Association of the Petroleum Industry of Kurdistan (APIKUR) has taken note of the recent announcement by the Minister of Energy and Natural Resources of Turkey stating that the Iraq-Turkey pipeline (ITP) is now ready to resume operations. APIKUR welcomes this development, as it can be seen as a significant step towards the long-awaited recommencement of international crude oil exports produced in the Kurdistan Region.
APIKUR emphasizes that, even if the ITP reopens, the member companies of APIKUR won’t be able to produce oil for pipeline exports. This is because it is uncertain how International Oil Companies (IOCs) will be compensated for their contractual entitlements of oil already sold and delivered for export in the past, as well as for future sales of such oil for export. Currently, APIKUR members are owed nearly $1 billion in overdue and unpaid arrears.
IOCs that hold production sharing contracts (PSCs) are entitled to take their respective shares of crude oil and sell them separately. If no agreement is reached regarding payment, our member companies will be forced to sell their contractual entitlements to buyers who can guarantee upfront payments for oil deliveries.
The PSCs establish contractual rights governed by English law and resolved through international arbitration at the London Court of International Arbitration.
“This month, the delays in reopening the pipeline between Iraq and Turkey, as well as resolving contractual entitlements of IOC, have cost Iraqis a loss of approximately $1 billion in revenue,” stated Myles B. Caggins III, the spokesperson for APIKUR. “APIKUR members are eager to collaborate with the governments of Kurdistan and Iraq to restore this revenue and even increase production. Once agreements for payments and respect for existing contracts are settled, we believe that this can be achieved quickly and efficiently.”
APIKUR urges constructive engagement to encourage international investment for Iraqis.
 in Iraqi Kurdistan has clearly stated that its members won't be...){kind=link}