Iraqi Kurdistan Oil Losses Reach Two Billion Dollars

Sources told "Reuters" today, Tuesday, that Iraq and Turkey are set to begin technical talks by early next week regarding the resumption of oil exports from northern Iraq, but hopes appear dim for a quick resolution. Turkey halted Iraq's oil exports of 450,000 barrels per day via the pipeline extending from the semi-autonomous Kurdistan region in northern Iraq to the Turkish port of Ceyhan on March 25. "Reuters" estimates that the ongoing halt for 80 days has cost the Kurdistan Regional Government more than two billion dollars. The two sources familiar with the discussions, speaking on condition of anonymity, indicated that technical-level discussions regarding the resumption of exports between Iraq and Turkey are scheduled for the weekend or early next week. There was no comment from the Turkish Ministry of Energy or the spokesperson for the Iraqi Ministry of Oil. An Iraqi oil official from the North Oil Company told Reuters that the Turkish state energy company said the pipeline requires further technical inspection before restarting and will send a technical memorandum regarding the pipeline's status in the coming days. The source added that this does not mean exports will resume immediately, as this decision requires high-level political discussions. He mentioned that a Turkish energy delegation is expected to arrive in Baghdad, but no specific date has been set yet. Turkey's decision to suspend exports followed an arbitration ruling by the International Chamber of Commerce ordering Turkey to pay 1.5 billion dollars in compensation to Baghdad for damages incurred from the Kurdistan Regional Government exporting oil without Baghdad's permission between 2014 and 2018.