ERBIL (Kurdistan24) – OPEC has advised Iraqi Oil Minister Hayyan Abdul Ghani to allow the Kurdistan Region to resume oil exports of 200,000 barrels per day through Turkey. This recommendation comes amid ongoing disputes over oil production limits and revenue sharing.
On Monday, Sabah Subhi, a member of the Iraqi parliament’s oil and gas committee, told Kurdistan24 that OPEC had warned Iraq to reduce its overall oil production, which has exceeded its quota by 1.4 million barrels per day. This overproduction, mainly from southern fields, was intended to offset the suspension of Kurdish oil exports and address budget shortfalls.
Subhi noted that while the UN and European countries, including Turkey, France, and Italy, have officially called for the resumption of Kurdish oil exports, OPEC’s position had not been formalized until now.
He suggested that the push for resuming exports may be influenced by international oil companies (IOCs) linked to OPEC members, who are concerned about financial losses due to the export halt. The strategic importance of the Ceyhan port for European energy security, especially in the context of the Russia-Ukraine conflict, adds complexity to the issue.
Subhi argued that the technical aspects for resuming exports are ready, with Turkey prepared to facilitate and IOCs capable of managing operations. However, the Iraqi government is reportedly unhappy with the proposed costs for oil extraction and transportation, which it considers higher than its own.
An oil ministry source confirmed OPEC’s recommendation to Abdul Ghani but noted that the minister has expressed concerns about the Kurdistan Regional Government’s (KRG) commitment to revenue sharing and domestic oil supply.
Despite these concerns, OPEC has reiterated its position, putting Abdul Ghani in a challenging position and ultimately leaving the decision to the Iraqi prime minister.
This situation highlights the complex mix of economic, political, and geopolitical factors affecting Kurdish oil exports and the difficulties Iraq faces in reconciling its OPEC obligations with internal disputes over resource management and revenue sharing.
The Association of the Petroleum Industry of Kurdistan (APIKUR) has called for the resumption of Kurdish oil exports, placing the blame for the continued suspension on Baghdad. A Kurdish member of the Iraqi Parliament, who sits on the Oil and Gas Committee, stated that Iraq’s oil production exceeds its OPEC quota and that resuming Kurdish oil exports would exacerbate this issue.