Iraq-Turkey Pipeline Restart Talks Exclude Industry Representation, APIKUR Says

APIKUR, which represents international companies involved in upstream oil or gas contracts in Iraq's Kurdistan region, have not been contacted by Iraqi or Kurdish officials for a deal to allow the resumption of oil flows from the Iraq-Turkey pipeline.

(Reuters) — APIKUR, which represents international companies involved in upstream oil or gas contracts in Iraq's Kurdistan region, have not been contacted by Iraqi or Kurdish officials for a deal to allow the resumption of oil flows from the Iraq-Turkey pipeline.

Last Sunday, Iraqi oil minister Hayan Abdel-Ghani in a meeting with Kurdistan Regional Government (KRG) officials said he could reach a deal with all the parties concerned - including foreign oil companies - to resume oil production from the oilfields within three days.

On Friday, in an APIKUR statement seen by Reuters, the group said although these discussions are a "potentially positive step," its members were not invited to this meeting and had not received any official communications of the meeting's outcomes.

No final deal was reached at the meeting, a source familiar with the matter said.

"We're awaiting official communication ... for the next steps," APIKUR spokesperson Myles Caggins said in a statement to Reuters.

Any agreement will require the endorsement of Iraqi, Kurdish officials and APIKUR.

Turkey halted 450,000 barrels per day (bpd) of northern exports through the Iraq-Turkey pipeline from March 25 after an International Chamber of Commerce (ICC) arbitration ruling.

The ICC ordered Ankara to pay Baghdad damages of about $1.5 billion for unauthorized exports by the KRG between 2014 and 2018.

Iraqi government oil officials met representatives of the Association of the Petroleum Industry of Kurdistan (APIKUR) for the first-time last week.

International oil companies operating in the region will not produce oil for pipeline exports until the issue of overdue payments estimated at nearly $1 billion is resolved, APIKUR member DNO said earlier this month.

According to APIKUR, more than $7 billion in export revenue has evaporated since the pipeline closure in March.

Iraq, OPEC's second-largest oil producer, exports about 85% of its crude via ports in the south. The northern route via Turkey accounts for about 0.5% of global oil supply.