Efforts to restart Iraqi Kurdish oil exports via the Iraq-Turkey pipeline have stalled due to unresolved payment terms and contract disputes, two sources close to negotiations told Reuters. Talks, ongoing since late February, aim to resolve a two-year standoff that halted 400,000+ barrels per day (bpd) of Kurdish oil flows to Turkey’s Ceyhan port.
Key Issues:
Payment Uncertainty: Baghdad demanded an independent consultant assess production and transportation costs to set prices, casting doubt on honoring existing Kurdish contracts with international oil firms.
Industry Backlash: The Association of Petroleum Industry of Kurdistan (APIKUR) rejected the move, accusing Iraq’s Oil Ministry of undermining contract agreements. APIKUR insists exports won’t resume without guaranteed payments for past and future sales.
U.S. Pressure:
The Trump administration has threatened sanctions against Iraq if Kurdish oil flows don’t resume, seeking to boost global supply and curb Iraq-Iran financial ties.
Washington aims to tighten pressure on Tehran’s oil revenue and nuclear program while stabilizing oil markets.
Geopolitical Tensions:
Iraq, caught between U.S. demands and Iranian influence, fears fallout from U.S. sanctions.
Major oil firms like DNO, Genel Energy, Gulf Keystone, and Shamaran face losses amid the deadlock.