Investment falls and jobs are lost in Kurdistan oil industry as pipeline outage continues
25 July 2023
The Association of the Petroleum Industry of Kurdistan (‘APIKUR’) notes that today marks four months since the closure of the Iraq-Turkey pipeline ('ITP'). The ongoing closure is having a significant impact on foreign investment in Kurdistan, and a prolonged closure threatens thousands of jobs in the region.
To date, APIKUR member companies, which include DNO, Genel Energy, Gulf Keystone Petroleum, HKN Energy and ShaMaran Petroleum, have reduced spending plans in the region by some $400 million in 2023, with 2024 spending plans under review.
With no certainty on when the ITP will reopen, or when payments for exports will then resume, our Member companies have already had to take steps to cut costs, which have resulted in hundreds of personnel layoffs.
The oil industry in Kurdistan generated over 80% of the revenue for the Kurdistan Region’s economy in 2022. Should the pipeline outage continue, foreign investment will be further reduced, which in turn will put at risk further jobs and the ability for the industry to deliver the 400,000 barrels of oil per day required under the 2023-2025 Federal Budget Law.
APIKUR continues to believe that a speedy reopening of the ITP for oil exports and a clear repayment and cost recovery plan that is consistent with existing contracts are necessary for the resumption of oil production and in the best interest of Iraq as a whole and the Kurdistan region, as well as our Member companies. APIKUR appeals to all stakeholders to redouble their efforts for a timely resolution.
APIKUR’s objective and purpose is to promote the KRI as an attractive destination for international oil and gas companies, service providers and investors. In addition, APIKUR aims to advocate for and represent the common interests of its members, function as a joint and effective voice for its Members towards all relevant stakeholders whether in the KRI, or elsewhere, and provide a forum for the Members to share relevant industry information and best practices. APIKUR is a Company Limited by Guarantee established under English law.
For more information, visit www.apikur.uk