The Iraqi Ministry of Oil confirmed on Monday that, under the guidance of the Iraqi government, it is committed to making all possible efforts to resolve disputes and resume exports through the Iraqi-Turkish pipeline, in a manner consistent with the constitution and the law, pointing out that foreign companies wishing to work in Iraq must respect the country’s sovereignty and laws. And its judicial decisions, and adjusting their conditions accordingly, instead of interfering in sovereign affairs related to Iraq’s foreign policy.
The ministry said in a statement, a copy of which was obtained by Al-Khaleej: “The Federal Ministry of Oil reviewed a statement issued by a party calling itself (the Kurdistan Oil Industry Association (APICOR)) dated 3/23/2024. The statement included a distortion of the facts and a number of fallacies. ».
She added: “In this regard, the Ministry would like to clarify that the cessation of oil exports through the Iraqi-Turkish pipeline in March 2023 was due to a Turkish decision resulting from the issuance of an international arbitration decision by the Paris Chamber of Commerce in favor of Iraq. The export did not stop, not for a single day, as a result of an Iraqi federal decision. After more than six months and important negotiations led by this ministry with the Turkish side, the two parties reached the restart of the pipeline and the treatment of the technical problems that resulted from its closure, in the shortest possible time. The federal government is the most affected by the cessation of exports for reasons related to sovereign oil policy and others.”
Reasons for stopping export
She explained that “one of the most important reasons for stopping exports currently is the refusal of foreign companies operating in the Kurdistan region of Iraq to officially hand over their production to the regional government to be exported in accordance with the federal general budget law in force, and this includes companies joining the association mentioned above.” Export can be resumed in a short period if these companies deliver the oil produced from the fields located in the region in accordance with the law. The federal government and this ministry have previously made diligent efforts to overcome all obstacles to resume exports, as is evident from the content of a large number of books, official correspondence, meetings and relevant decisions over a whole year, the last of which was our letter on 3/18/2024, which included the necessity of delivering Oil actually produced in the region for the purpose of export. This ministry still insists on resuming exports through the Iraqi-Turkish pipeline as soon as possible, while adhering to the provisions of the constitution and the law.
New contracts
She pointed out that “this ministry had previously requested from the Kurdistan Regional Government and the oil companies operating in it complete copies of all the contracts mentioned above for the purpose of studying them and arriving at new contracts in accordance with the constitution, the law, and the best policies followed by this ministry with major international companies, but the contracts requested were not Received so far. How is it permissible to demand that this ministry abide by contracts that it has not seen and does not recognize, and which, in principle, are in violation of clear and binding judicial decisions?
The Ministry stated: “Federal General Budget Law No. (13) of 2023 was issued, and entered into force on 1/1/2023, and (Article 12/Second/C) included a provision for calculating production and transportation costs equal to the rate paid by this Ministry in Its contracts, where the average cost of production is ($6.9 per barrel), while companies operating in the region are demanding three times this amount (excluding the exaggerated transportation fees as well) as one of a set of conditions for resuming the delivery of produced oil.”
Violating the budget law
She emphasized: “It has been repeatedly clarified that this ministry cannot violate the budget law and other applicable laws, in addition to indicating that there is a large exaggeration in the costs mentioned in the previous paragraph. This ministry has previously officially confirmed the immediate resumption of exports in accordance with the law through the Iraqi-Turkish pipeline, with negotiations in parallel to reach a comprehensive, consensual solution in a way that achieves the public interest. However, companies continue to abstain only after submitting in advance to its conditions that violate the law, and this cannot be accepted under any circumstances.”
