ERBIL, Kurdistan Region of Iraq – International oil producers operating in the Kurdistan Region on Monday said that Erbil and Baghdad have boosted efforts to resume Kurdish oil exports and aim to reach an agreement soon, also announcing their readiness to restart the process once their demands are met.

The Association of the Petroleum Industry of Kurdistan (APIKUR) said in a statement that they are “pleased” to note that the negotiations between the Kurdistan Regional Government (KRG) and the Iraqi federal government “have intensified to reach agreement to resume oil exports” through the Iraq-Turkey pipeline (ITP), “with the goal to do so in the near term.”

The association added that their member companies emphasized their willingness to resume exports once their demands are met, during a meeting with Erbil and Baghdad officials on Saturday.

“In this meeting, IOCs reiterated that they are prepared to immediately resume exports through the ITP once binding agreements are in place that ensure payment certainty for such exports which reflect each IOC’s existing, legally valid contractual terms as well as resolution of the outstanding payment arrears to be agreed with each company,” read the APIKUR statement.

“All payments to be made promptly and transparently in a manner acceptable to the IOCs and the KRG, either in cash or through the transfer of their entitlement share of oil “in kind”,” it added.

Exports of the Kurdistan Region’s oil through the Turkish Ceyhan pipeline were halted in March 2023 after Ankara lost a case against Baghdad in a Paris-based arbitration court. The case accused Ankara of breaching a 1973 agreement by allowing the Kurdistan Regional Government (KRG) to start selling oil independently of Baghdad.

Baghdad and Erbil announced in late February that they reached an agreement to resume the Kurdistan Region’s oil exports to the international market, but the process has yet to restart, with international oil producers demanding payment surety, transparent implementation of Iraq’s budget law stipulations, and resolution of payments that are in arrears before resuming the work.

“APIKUR member companies stand ready to resume exports as soon as written agreements are executed that honor our existing contracts which are governed by international law,” the APIKUR statement on Monday cited spokesperson Myles B. Caggins III as saying.

The United States Embassy in Iraq on Sunday told The New Region that they have urged Erbil and Baghdad to resolve the issue of the Kurdistan Region’s civil servant salaries, noting that the resolution of the dispute would “send a positive signal on broader cooperation for the benefit of all Iraqis,” such as the reopening of the Iraq-Turkey pipeline and further “energy exploration,” including with US firms.