(Bloomberg) -- International oil producers in Iraq’s Kurdistan region proposed selling crude from their fields directly to the federal government in an attempt to resume exports that have been stalled for more than seven months.

The companies operating in the semi-autonomous region of Kurdistan have largely shut in output since a payment dispute resulted in Turkey halting a pipeline that carried the crude to the Mediterranean coast. It’s cut off about 500,000 barrels a day of supply from Iraq’s north to global markets.

Turkey said last month that the pipeline is ready to resume, but multiple issues need to be resolved before flows can start. The Iraqi federal government claims the right to sell all oil from Kurdistan, while the companies have production agreements with the regional administration and had been selling it a majority of their supply before the halt. 

The firms, which already face over $1 billion of losses from the stoppage, met Iraqi officials in Dubai Wednesday and offered to sell their output directly to SOMO, the state oil marketer, the Association of the Petroleum Industry of Kurdistan, the group representing the companies, said in a statement. The producers won’t ramp up output for export until issues are resolved. 

The companies “will be able to resume full oil production when there is a clear, well-defined, legally binding agreement on oil sales and export terms, including payments for past and future sales,” the association said. 

Iraq gives some semi-autonomous powers to the Kurdish region, but the issue of rights to oil sales from the region has dragged on for years. The country hasn’t passed a law governing the oil industry and regulating sales. Iraq is OPEC’s largest producer after Saudi Arabia, and sells most of its oil via the southern port of Basrah.

DNO ASA, Genel Energy Plc, Gulf Keystone Petroleum Ltd., HKN Energy Ltd. and ShaMaran Petroleum Corp. established the producers’ group in February. Hunt Oil Co. joined last month.

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