KRG imposes major new pipeline fees on companies

Iraq’s semi-autonomous Kurdistan Regional Government (KRG) is imposing higher pipeline tariffs on international oil companies — the latest in a series of unexpected and unilateral policy changes that raise doubts about the oil sector investment climate. 

In a Feb. 10 letter, which was seen by Iraq Oil Report and confirmed as authentic by two industry officials and a KRG official, the KRG Ministry of Natural Resources (MNR) notified oil-producing companies that the authorities responsible for both the Kurdistan Export Pipeline (KEP) and the Turkish side of the Iraq-Turkey Pipeline (ITP) are assessing increased fees that will be passed on to companies.