PM Barzani: No barriers to Kurdistan oil exports
Shafaq News – Erbil / Al-Sulaymaniyah
Kurdistan Region Prime Minister Masrour Barzani said on Tuesday that his government sees no obstacle to resuming oil exports, underscoring that negotiations with Baghdad are continuing to resolve outstanding disputes.
Speaking at the Erbil International Investment Fair, Barzani explained that the unresolved issue lies between the federal government and international oil companies operating in the Region. “These companies are seeking guarantees to secure the fair and uninterrupted payment of their dues. “
“On non-oil revenues, we have almost reached the final stage of understanding,” he noted, while criticizing Baghdad for raising new obstacles each time progress is made.
A source told Shafaq News that Erbil and Baghdad had reached an understanding in recent weeks under which the Kurdistan Regional Government (KRG) would transfer 240 billion dinars in non-oil revenues for May and June—120 billion per month—and deliver 230,000 barrels of oil per day to Baghdad. In exchange, the federal government would cover the Region’s salaries for the same period.
Read more: Kurdistan’s salaries: A lingering injustice beyond numbers
Ali Nizar, director of Iraq’s State Oil Marketing Organization (SOMO), confirmed on Saturday that the decision to resume exports ultimately rests with the producing companies. SOMO has already notified both Baghdad and Erbil of its readiness to market Kurdistan’s oil once the impasse is resolved.
The oil dispute is closely tied to the ongoing crisis of salary delays in the Kurdistan Region. Since May 2025, the federal government has suspended regular salary transfers, leaving public employees in limbo. The Kurdish Ministry of Finance and Economy said it has submitted the August payroll to Baghdad for funding, while in late August, the Iraqi cabinet approved the release of June salaries on condition that the KRG transfer 120 billion dinars in non-oil revenues.
Kurdistan MP Ali Hama Salih warned that the stalemate risks creating a long-term crisis. In a press conference in Al-Sulaymaniyah, he cautioned, “Failure to resolve the oil export crisis in the coming days will create a six-month crisis over the payment of salaries in Kurdistan.”
Salih explained that some producing companies demand up to 45 percent of oil revenues and insist on their share being secured, complicating the deal between Erbil and Baghdad. He added that the KRG wants disputes over oil contracts to be referred to international courts, while Baghdad insists they fall solely under Iraqi law.
He also warned that unless an agreement is reached within the next two weeks, the dispute will likely stall during Iraq’s election campaigns and deepen further once the federal government enters a caretaker phase with limited powers.
