Iraqi officials from the oil sector will meet with their counterparts from Iraqi Kurdistan and representatives of international companies in early December to discuss fundamental contractual changes in an attempt to resume exports through Turkey, according to a deputy minister.
Basim Mohammed, Iraqi Deputy Minister of Oil for Exploration and Production Affairs, stated that the resumption of crude oil exports from the north, interrupted since March, depends on renegotiating the current production-sharing contracts to a profit-sharing model.
"If we reach an agreement with these companies to modify their contracts, oil exports through Turkey will resume," he told Reuters.
"We hope to reach an agreement with the companies. These companies want to continue operating in the region without any issues," he added.
Mohammed indicated that the ideal scenario would be for these contracts to be similar to the model used in Iraq's fifth licensing round with Crescent Petroleum, based in the United Arab Emirates.
Turkey halted Iraqi exports of 450,000 barrels per day of northern oil on March 25 after an arbitration ruling from the International Chamber of Commerce (ICC). The ruling ordered Turkey to pay Baghdad $1.5 billion in compensation for unauthorized exports between 2014 and 2018."
