Oil export agreement between Iraq, Kurdistan grows optimism
(MENAFN) Iraqi Oil Minister Hayan Abdul Ghani expressed optimism on Tuesday regarding the potential for an agreement with the Kurdistan Regional Government (KRG) to resume oil exports in the coming days. In television statements, Abdul Ghani labeled the existing oil production sharing contracts with the KRG as "unacceptable" and revealed his proposal to shift from these contracts to profit-sharing agreements. This move signals a collaborative effort to address longstanding issues and pave the way for renewed oil exports from the region.
Abdul Ghani's emphasis on the need to modify the current contracts suggests a willingness to explore more equitable arrangements that could benefit both parties. The proposed shift to profit-sharing contracts reflects a desire for a more balanced distribution of the economic benefits derived from oil production in the semi-autonomous Kurdistan region. This could potentially lead to a more harmonious and mutually beneficial relationship between the Iraqi government and the Kurdistan Regional Government.
The anticipation of a resumption in oil exports gains significance in light of the potential reopening of the pipeline from northern Iraq to Turkey after a hiatus of over seven months. Although Turkey announced the readiness of the pipeline to resume operations last month, Baghdad awaited official notification from Istanbul. It appears that any delay in resuming operations is linked to the resolution of outstanding financial and technical issues, emphasizing the complexity of negotiations in the oil sector.
The prospect of renewed oil exports holds economic significance for both Iraq and the Kurdistan region, potentially contributing to economic stability and fostering cooperation between the central government and the semi-autonomous Kurdish administration. The ongoing negotiations and proposed contractual adjustments underscore the intricate dynamics surrounding oil agreements and the diplomatic efforts required to ensure the smooth functioning of the oil industry in the region.
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.