Bid & Tender

News

ShaMaran to Restart Oil Exports via Iraq-Türkiye Pipeline

ShaMaran Petroleum Corp. announces that interim agreements have been executed between the Kurdistan Regional Government, Government of Iraq and several International Oil Companies including ShaMaran. These agreements are expected to enable the restart of international oil exports by pipeline from the Kurdistan Region of Iraq (KRI) within a matter of days.

Garrett Soden, President and CEO of ShaMaran, commented: “We welcome the resumption of oil exports from the Kurdistan region and thank our operating partner, HKN Energy, for leading the negotiations. Pipeline exports are critical for the future stability and prosperity of both the Kurdistan region and federal Iraq. We believe these agreements will benefit all Iraqis and allow IOCs to continue investing in the region while receiving the contractual value of the oil produced.”

The agreements to resume oil exports from the KRI are based on the Iraqi Budget Law amendment in February 2025 and Iraq’s recognition of the KRI Production Sharing Contracts (PSCs). The Budget Law provides for an initial period of approximately three months during which IOCs will be compensated at US$16 per barrel for the cost of production and transportation, resulting in similar economics to the current KRI local oil sales, with a reconciliation to full PSC entitlement following a review of the IOC invoices and contractual entitlements by an industry consultant. The Iraqi State Organization for Marketing of Oil (SOMO) will market the KRI crude at the Kirkuk blend official selling price, and IOCs will be paid in arrears from the sale of their allocation at Ceyhan via their nominated trader. The agreements also provide that the IOCs and KRG will continue discussions about recovering outstanding accounts receivable from past oil sales.

Production at the Sarsang Block has returned to full capacity nearly one month ahead of schedule. The Atrush Block is currently producing approximately 35,000 barrels of oil per day (bopd), and the Sarsang Block is producing over 30,000 bopd.

BACK

Related News