May 19, 2024
Talks Stall in Restarting Oil From Kurdistan, Iraqi Leader Says
Bloomberg News
,(Bloomberg) -- No progress has been made in long-standing talks for international oil companies to resume exporting crude from the Kurdistan region of Iraq, Prime Minister Mohammed Shia Al-Sudani said in a televised news conference.
Al-Sudani said the government is eager to resolve an impasse over prices that has halted oil exports for more than a year. But he said the companies refuse to amend contracts signed years ago with semi-autonomous, oil-rich region of Kurdistan.
“The companies refuse to amend, so the process stops at this point,” he said.
Iraq is OPEC’s second-largest producer.
The country’s federal budget through next year sets an average cost for the production for each barrel at $8. But it costs $26 a barrel for the companies working in Kurdistan, which forced the companies to halt production, Al-Sudani said.
He didn’t say when discussions with the companies might resume.
--With assistance from Kadhim Ajrash.
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