Baghdad poised to resume Kurdish oil exports after deal finalized

Shafaq News – Erbil (Updated at 17:11)

The Kurdistan Regional Government (KRG) said Wednesday it has finalized all commitments for resuming oil exports in coordination with Iraq’s federal Ministry of Oil, “clearing the way for Baghdad to take the next step.”

The KRG’s Ministry of Natural Resources confirmed that all local and foreign companies operating in the Region have signed onto the framework, with only one foreign firm, DNO, still pending. Officials stressed this would not hinder the broader arrangement with Baghdad.

On September 23, the ministry and the companies forwarded their approvals to Iraq’s Oil Ministry. The final signature from Baghdad would allow the State Organization for Marketing of Oil (SOMO) to begin receiving and exporting crude from the Kurdistan Region.

Exports from the Region have been suspended since March 2023 after Turkiye halted flows through the Ceyhan pipeline. Ankara acted following an International Chamber of Commerce ruling in Paris that sided with Baghdad in its long-running arbitration case against the KRG, which had been exporting oil independently.

In August, Baghdad and Erbil agreed on a mechanism to restart exports, reserving 50,000 barrels per day for local consumption and transferring the remainder to SOMO. The federal government is also pursuing talks with Turkiye to resume pumping Kurdish crude to international markets.