Why was the resumption of oil exports through Ceyhan absent from the negotiating table between Iraq and Turkey?

Why was the resumption of oil exports through Ceyhan absent from the negotiating table between Iraq and Turkey?

Iraq – Attention was focused on the visit of Turkish President Recep Tayyip Erdogan to Iraq, with great interest, to resolve many outstanding issues, including the resumption of the export of Kurdistan oil and thus also Kirkuk oil through the Turkish port of Ceyhan.

However, none of that happened, in a file that was resolved internationally, but it cannot be resolved locally yet, and Turkey is no longer a party to this problem since it announced months ago that the pipeline was ready to resume exports, but Iraq has not yet resumed exports.

Iraqi government spokesman Bassem Al-Awadi said, on the sidelines of Erdogan’s visit, in statements to reporters, that the return of oil exports from Kurdistan to Turkey via the pipeline, which has been closed for more than a year, will take longer as negotiations continue with the regional government and oil producers.

Al-Awadi added that the talks between the companies and the Iraqi Oil Ministry are likely to take some time, especially since Baghdad is working to establish a direct relationship with regard to production quantities, exports and prices, explaining that there is no specific time frame for resolving negotiations with foreign oil companies in the region.
It is clear that the problem is completely limited to only two parties: not Turkey and not the Kurdistan government. Rather, the problem is confined to Baghdad and foreign companies operating in Kurdistan, as these companies are demanding that the amounts of production costs recorded in the budget be adjusted.
Prime Minister Muhammad Shiaa Al-Sudani said a few days ago that the cost of producing a barrel in Iraq is $8, while it costs $26 in Kurdistan.

He explained, “We proposed two solutions. The first was to amend the contracts of oil companies in Kurdistan and transfer the obligations to Baghdad, but the companies and the regional government rejected it. So we proposed the second solution, which is to amend the budget law and amend production costs and foreign companies’ dues, and Parliament rejected that.”

Source: Iraqi media

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2024-04-23 08:59:34

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