An agreement reached between Iraq and Kurdistan last week to resume crude exports through Turkey protects the rights of foreign oil companies operating in the semi-autonomous region, the head of Iraq’s state oil marketer says.

The agreement provides for the export of 190,000 barrels per day (bpd) via the Kirkuk-Ceyhan pipeline and the production of 50,000 bpd for domestic use, said Ali Al-Shatri, director of the State Organisation for Marketing Oil (SOMO).

Al-Shatri said in local press comments that those exports are within Iraq’s OPEC Plus quota and that they are poised to increase in the near future with an expected rise in investments by Kurdistan-based oil companies.

 “The companies operating in Kurdistan’s oil sector are global oil operators which rely on precise production systems and calculation of costs and revenue,” he said.

“The negotiations with these companies were conducted in detail, and they were persuaded by delving into minute details and wording the agreement word for word…this agreement guarantees the rights of these companies, the rights of the federal government, and the rights of the Kurdistan Regional Government," he noted.

(Writing by N Saeed; Editing by Sona Nambiar)

(anoop.menon@lseg.com)

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