The Organization of Petroleum Exporting Countries (OPEC) has formally appealed to the Iraqi Oil Minister, urging the resumption of oil exports from the Kurdistan Region in a bid to alleviate economic strains.
An insider within the Federal Oil Ministry revealed to Iraqi media that OPEC has specifically called upon Federal Oil Minister Hayyan Abdul Ghani to authorize the export of oil from the Kurdistan Region via the Turkish port.
According to the insider, OPEC has recommended allowing the Kurdistan Regional Government (KRG) to export 200,000 barrels of oil per day through the Turkish port.
In response to OPEC’s appeal, Hayyan Abdul Ghani has forwarded the request to Iraqi Prime Minister Mohammed Shia al-Sudani, awaiting a decisive response.
The Iraq-Turkey oil pipeline, crucial for oil exports, has remained inactive since March 25, 2023. Despite its capacity to export 1.4 million barrels of oil per day, previous exports reached only 450,000 barrels per day before the suspension.
While the Turkish Energy Ministry has confirmed the pipeline’s operational readiness since October 4, the Iraqi government has hesitated to resume oil exports from the Kurdistan Region through the pipeline, citing unresolved issues.
The prolonged suspension of oil exports has inflicted substantial economic losses on Iraq, the Kurdistan Region, and international oil companies. Iraq has faced a staggering $14.5 billion revenue loss during the 14-month suspension period, with daily fines of $800,000 for non-compliance with export agreements.
Furthermore, investments worth over $400 million have been frozen, resulting in a significant decline in annual revenues for oil companies and a surge in unemployment rates.
The suspension of oil exports has not only led to a rise in global oil prices but has also tarnished Iraq’s reputation, dampening investor confidence and reducing trade demand within the country, according to energy experts.