UAE’s TAQA concludes deal to sell stake in Atrush oilfield in Iraqi Kurdistan
The Abu Dhabi National Energy Company (TAQA) has finalized an agreement with British firm General Exploration Partners to divest its entire stake in the Atrush oilfield situated in the Kurdistan region of Iraq. In an official statement, TAQA confirmed the completion of sales agreements, highlighting that final approvals from relevant parties are still pending.
While specific details regarding the financial terms of the deal and TAQA’s ownership percentage in the oilfield remain undisclosed, the transaction underscores the strategic realignment in the energy sector. The move comes at a time when Iraq’s oil exports, particularly from the Kurdistan region, face challenges, notably the prolonged closure of a pipeline transporting crude to the Turkish port of Ceyhan.
The shutdown of the pipeline for nearly 10 months has resulted in significant revenue losses, estimated at approximately $1 billion per month. Compounding the issue is the ongoing debate over compensation for costs associated with the pipeline, adding complexity to an already intricate situation.
Prime Minister Mohammed Shia Al-Sudani revealed that the Iraqi government is actively engaging with the parliamentary financial committee to amend pertinent laws. This is seen as a crucial step, particularly for companies operating in Iraqi Kurdistan eagerly awaiting payments to cover production costs, as reported by Oil Price.
The disagreement over approval mechanisms for oil exports from Iraqi Kurdistan has led to the blockage of approximately 450,000 barrels per day of oil from Iraq’s northern resources since March. Consequently, Iraq has been compelled to rely solely on its southern oil export terminals for selling oil.
The recent announcement by Iraqi Oil Minister Hayan Abdul-Ghani on November 12 indicates ongoing efforts to reach an agreement involving the Kurdistan Regional Government (KRG), oil companies, and Ankara, with the aim of resuming oil exports from Iraq to Turkey.
