Ministry of Oil Invites Foreign Companies to Discuss Kurdistan Oil Contracts
The Ministry of Oil in Iraq has extended an invitation to international oil companies operating in the Kurdistan region to convene in Baghdad on Tuesday, March 4, 2025. The meeting’s purpose is to engage in discussions concerning existing contracts and to foster collaborative strategies for the development of oil fields.
According to the Ministry, the invitation is directed towards foreign companies organized under the (Apuroor) agreement, as well as the Ministry of Natural Resources in the Kurdistan Regional Government. The goal is to circulate and deliberate on contractual matters that will enhance the development of oil fields in line with global best practices, ultimately serving the national interest.
Recently, the Ministry of Oil announced plans to resume oil exports from Kurdistan through the State Organization for Marketing of Oil (SOMO) to the port of Jihan. However, the coalition of foreign companies operating in Kurdistan has responded by stating they have not been approached by the Ministry of Oil regarding the details of resuming exports or the payment of outstanding dues.
Despite an amendment to the oil barrel cost in the budget, now set at $16 per barrel, several challenges remain that could impede the resumption of oil exports. These include contentious issues regarding the oil contracts with foreign companies, which the Ministry of Oil in Baghdad has deemed unacceptable. While these contracts have been challenged in court, the judiciary has subsequently returned the appeal, leading foreign oil companies to seek compensation totaling $24 billion.
This upcoming dialogue represents a critical opportunity for both the Iraqi government and foreign oil operators to align on the future of oil production and export from the region, addressing the financial and operational matters that have arisen in recent months.
