By John Lee.
Iraq’s Ministry of Oil has issued a further statement setting out its position on the resumption of exports through the Kirkuk-Ceyhan pipeline, following recent comments by the Kurdistan Regional Government’s Ministry of Natural Resources.
The statement describes the KRG ministry’s position as political in nature, and sets out Baghdad’s operational and legal arguments for restarting exports.
Federal Ministry of Oil position
The ministry said:
It is working to resume operations on the Kirkuk-Ceyhan pipeline within the next few days to enable exports of Kirkuk crude.
As an interim measure, it has proposed using the pipeline from Sarlawa (Kirkuk) to Fishkhabur, exporting up to 250,000 barrels per day.
If combined with production from fields in the Kurdistan Region, total via the route could reach around 450,000 barrels per day.
It said this would help offset the impact of disrupted southern exports through the Strait of Hormuz, particularly given current price differentials.
The ministry stated that the Iraq-Turkey Pipeline is a federal installation with capacity exceeding one million barrels per day, under the authority of the federal government.
It added that Turkey has indicated readiness to facilitate exports under this framework.
The ministry also referenced plans to construct a new parallel pipeline as part of a broader infrastructure strategy.
It called on the Kurdistan Regional Government to reverse what it described as a position blocking exports, warning that legal measures may otherwise be pursued.
Response to KRG claims
The ministry also addressed issues raised by the Kurdistan Regional Government:
It said linking oil exports to salary payments for regional employees is not relevant, describing salaries as a matter for the Ministry of Finance.
It defended the implementation of the ASYCUDA system as an anti-corruption reform designed to facilitate legitimate trade and generate foreign currency transparently.
It argued that the KRG’s position conflicts with constitutional provisions, including Articles 110, 111 and 112, which it said establish federal authority over oil policy and confirm that oil and gas are owned by all Iraqis.
It also cited Federal Supreme Court rulings supporting this interpretation.
The ministry said that obstructing exports under current regional conditions risks harming Iraq’s economic interests and international standing.
The ministry called on Iraq’s Council of Representatives to review the situation, urging lawmakers to prioritise national economic interests and address what it described as a sensitive and consequential dispute.
Full statement from the Ministry of Oil (Baghdad):
This unofficial translation is provided in good faith for general information only. While every effort has been made to ensure accuracy, Iraq Business News accepts no responsibility for any errors, omissions, or misinterpretations.
Ministry of Oil 17th March
We have followed the statement issued by the Ministry of Natural Resources in the Erbil Government, which was a purely political statement underpinned by partisan positions, and does not represent the professional or legal perspective on operations within the oil sector.
In light of this, we wish to clarify the following to all our Iraqi people:
First: The Ministry of Oil is exerting considerable efforts to resume operations on the Kirkuk-Ceyhan oil pipeline, despite the obstacles we have encountered. It is hoped that this will be completed within the next few days, so that it may be used to export Kirkuk oil directly. However, given the current circumstances, the Ministry has requested the temporary use of the pipeline connecting the “Sarlawa” station in Kirkuk to the “Fishkhabur” station in the direction of Ceyhan port, to export no more than 250,000 barrels per day. Should oil produced from fields located in the Kurdistan Region of Iraq be added to this, the total export rate via this pipeline would reach approximately 450,000 barrels per day. Given the currently elevated price differentials, this level of production would help alleviate the strain caused by the closure of the Strait of Hormuz.
Second: In accordance with the Iraq-Turkey Pipeline (ITP) agreement, the pipeline is a federal governmental installation with a capacity exceeding one million barrels per day. Its route falls under the direct management of the Federal Government, both legally and politically, which holds the authority to operate the pipeline and export oil up to its full capacity. The Turkish side has expressed openness to this arrangement. We note here that, as part of the Ministry’s strategic plan, a new parallel replacement pipeline is to be constructed as a complement to the planned Basra Modern Pipeline project. On this basis, we call upon the Erbil Government to reverse its position of blocking exports. Should it refuse, the Federal Government will take all necessary legal measures.
Third: It is a matter of considerable surprise that the Ministry of Natural Resources in the Erbil Government has linked the matter of oil exports via the aforementioned pipeline to the issue of salaries for regional employees – which falls under the remit of the Ministry of Finance – despite the legal frameworks that have been put forward to regulate salary disbursements. The same applies to its introduction of the matter of implementing the ASYCUDA system, which represents one of the most important anti-corruption tools and constitutes a significant reform initiative that facilitates legitimate trade, generating foreign currency without manipulation or circumvention.
Fourth: Today, the Erbil Government repeats its attempts to breach the Constitution – most notably Article 110, which grants the Federal Government the right to formulate financial policy; Article 111, which stipulates that “oil and gas are the property of all the Iraqi people in all regions and governorates”; and which is further reinforced by Federal Supreme Court rulings No. 59/Federal/2012 and its consolidated ruling No. 110/Federal/2019, affirming this principle. Likewise, Article 112 of the Constitution obliges the management and exploitation of these resources in a manner that achieves the greatest benefit for the Iraqi people. The Erbil Government’s exploitation of the grave circumstances currently facing the region, and its efforts to obstruct oil exports via the Kirkuk-Ceyhan pipeline, constitutes a gravely irresponsible course of action that endangers the interests of all Iraqis – including the people of the Kurdistan Region of Iraq – and damages Iraq’s reputation at the international level.
Fifth: We call upon the Council of Representatives – which bears the honour of representing Iraq in its entirety, with all its members including those elected by our people in the Region – to examine this anomalous and ill-judged situation, which undermines trust and places economic pressure on Iraq at a sensitive time that cannot afford political manoeuvring. We urge it to look to the facts on the ground and to the supreme interests of all our people alike.
(Source: Ministry of Oil)
