KRG, Iraqi Gov Discuss Fixed Reimbursement for KRG Oil

The KRG and the federal Iraqi authorities are discussing a deal to reimburse the KRG with a fixed amount selling price for the region’s oil production of around $20.60/bbl, a source told S&P Commodity Insights.

• "Yes, there is a discussion and there is a good understanding, but there is no final agreement," KRG spokesperson Peshawa Hawramani Hawramani said. Kurdistan 24 reported that both sides are discussing a deal to reimburse the Kurdistan region by $20.60/bbl for its crude oil production.
• An industry sources familiar with the negotiations pointed to the difficulties around a fixed fee for reimbursement as it does not adjust for changes in the oil market and inconsistent with the way international oil companies are reimbursed in federal Iraq or other parts of the world.
• APIKUR, the Association of the Petroleum Industry of Kurdistan, last year urged Baghdad and Erbil to "provide IOCs with the confidence that their contractual right to recover costs and receive profit payments from successful projects."
• The association said on X earlier this month "severalAPIKUR member companies were present at recent talks in Baghdad and we hope that those conversations can be expanded to achieve formal agreements between all parties to resume full oil production and exports from Iraq's Kurdistan Region."
• Myles B. Caggins III, spokesperson for the APIKUR, said that APIKUR is following the efforts of federal Iraq and KRG "to resolve budget issues, inter alia, related to the resumption of full oil production and exports through the Iraq-Türkiye Pipeline; these talks are a positive step.”
• More on the latest Iraq-Turkey pipeline resumption situation: https://marketnews.com/iraq-turkey-crude-flow-resumption-shows-little-sign-of-progress