Turkey on March 25 halted Iraqi exports of 450,000 barrels per day via the pipeline that connects the Kurdistan region in northern Iraq to the Turkish port of Ceyhan.
Reuters calculations indicate that the 80-day shutdown cost the Kurdistan Regional Government more than two billion dollars.
The two sources, familiar with the discussions, said on condition of anonymity that technical-level discussions regarding the resumption of exports between Iraq and Turkey are expected to take place over the weekend or early next week. .
An Iraqi oil official with the state-run North Oil Company told Reuters that the Turkish state energy company had said the pipeline needed further technical review before restarting and would send a technical note on the status of the pipeline in the coming days.
The source said that this does not mean the immediate resumption of exports as this decision requires high-level political talks. He added that a Turkish energy delegation is expected to arrive in Baghdad, but he has not yet set a date.
Turkey’s decision to suspend exports follows an International Chamber of Commerce arbitration ruling that ordered Turkey to pay $1.5 billion to Baghdad in compensation for damages caused by the regional government’s oil export of Kurdistan without permission from the Baghdad government between 2014 and 2018.
Attempts to restart the pipeline were delayed by the Turkish presidential election last month and talks between the Iraqi government’s Oil Marketing Company (SOMO) and the KRG over an export deal that has now been reached.
Hopes of a return to work were bolstered when Turkish President Alp Arslan Bayraktar appointed Energy and Natural Resources Minister on June 3.
Sources told Reuters earlier that among the issues to be resolved, Turkey was seeking to negotiate the amount of compensation ordered by the International Chamber of Commerce.
The sources said they also want to permanently resolve outstanding issues in other open arbitration cases before agreeing to resume streams.
Last Monday, the Iraqi parliament approved the 2023 budget, which included articles that deny the financial independence of the Kurdistan Regional Government.
And the Kurdistan region is suffering from a cash crunch due to the pipeline disruption, and Iraqi politicians and Kurdish lawmakers have said the region has no choice but to approve the budget, which it would receive 12.67% of the $198.9 trillion total. dinars ($153 billion).
ARK’s revenue loss from the 80-day oil shutdown is more than $2 billion, according to Reuters calculations based on exports of 375,000 barrels per day, plus the historical discount of the ARK on the price of Brent crude.
The pipeline also exported about 75,000 barrels per day of federal crude.
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