Kurdistan and Iraq Authorities have come to an agreement with Iraq’s federal oil ministry to resume oil exports, signifying a crucial move towards settling a prolonged oil dispute.
Iraq has recommenced receiving oil exports from Kurdistan through Turkey’s Ceyhan port, beginning with a daily volume of 185,000 barrels, as confirmed today by Undersecretary of the Oil Ministry for Extraction Affairs, Basem Mohammed Khudair. The ministry aims to gradually increase the export volume to 400,000 barrels per day, in line with the requirements set forth in the Federal Budget Law.
Following a visit by an Iraqi Oil Ministry delegation to Erbil, an agreement was made to create joint technical committees to oversee the oil export resumption process. Mohammed Khudair affirmed that teams from the North Oil Company and the Kurdistan Regional Government (KRG) are inspecting pipelines to ensure readiness for oil flow. Iraq has formally requested updates from Turkey on the Ceyhan pipeline’s operational status, with an official response expected within 24 hours.
The KRG’s Ministry of Natural Resources stated on Sunday that an agreement with the Federal Ministry of Oil to resume exports has been finalized. Despite this agreement, Kurdish officials have stressed the importance of reaching a deal with Baghdad on domestic oil allocations before fully resuming exports.
The Iraqi Oil Ministry declared on Saturday that it has finalized all required procedures to restart exports in accordance with the Federal Budget Law and Iraq’s OPEC production commitments. The ministry also called on the KRG to provide the agreed volumes to the State Organization for Marketing of Oil (SOMO), which will oversee the exports under existing contracts.
The United States is reportedly pressuring Iraq to restart Kurdish oil exports amid allegations of extensive oil smuggling to Iran. An Iraqi oil official asserted that the US prefers Kurdistan’s oil to be legally exported to global markets rather than sold at lower prices to Iran. The situation has raised concerns about transparency in oil revenues and their return to the KRG treasury, as financial disputes between Erbil and Baghdad have worsened.
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