Iraqi oil sector officials met for the first time with representatives from the Kurdistan Oil Industry Association (Iraq's Oil Association) on Wednesday to discuss resuming the flow from the stalled export pipeline from Iraq to Turkey. The meeting, held in Dubai, included representatives from the Kurdistan Oil Association, the Iraqi Ministry of Oil, the state marketing company (SOMO), and the North Oil Company, as stated in a release shared with Reuters.
Turkey suspended flows from the northern Iraq oil export route following an arbitration ruling by the International Chamber of Commerce in March, which ordered Ankara to pay compensation to Baghdad for unapproved exports between 2014 and 2018. The Turkish Energy Minister indicated that the pipeline is ready to begin shipments, but two senior Iraqi oil officials previously stated that Iraq had not received official notification from Turkey regarding the pipeline's status.
The Kurdistan Oil Association includes global oil and gas companies that have a direct or indirect interest in contracts in the Kurdistan Region of Iraq, many of which were forced to halt production due to the pipeline's closure. During the meeting, both the Kurdistan Oil Association and Iraqi government officials emphasized the urgent need to fully resume oil production and exports under mutually acceptable commercial terms. However, an informed source indicated that no agreement had been reached yet.
Miles Kagan, a spokesperson for the Kurdistan Oil Association, stated in a release to Reuters, "This meeting was a preliminary step... We expect future meetings with all stakeholders." Iraq, OPEC's second-largest oil producer, exports about 85 percent of its crude through southern ports. However, the northern route through Turkey still accounts for approximately 0.5 percent of global oil supplies.