Genel Energy Urges Baghdad to Approve Kurdistan Oil Contracts
“With our peers in the KRI, we continue to work with our host Government and Federal Iraqi authorities to negotiate an arrangement that allows the resumption of international oil sales at international oil prices,” Genel Energy stated.
ERBIL (Kurdistan24) – The long-anticipated resumption of the Kurdistan Region’s oil exports has gained fresh momentum following Genel Energy’s call for the Iraqi federal government to formally approve its operating contracts.
The Turkish energy company, a key investor in the Tawke and Fishkhabur oil fields, underscored the need for legal recognition of its agreements to safeguard the rights of all stakeholders involved in the region’s vital oil sector.
In its recently published annual activity and revenue report, Genel Energy acknowledged the persistent challenges affecting oil production in the Kurdistan Region. Despite these obstacles, the company reaffirmed its commitment to restoring oil exports through the global oil pipeline network, which remains a crucial conduit for the region’s economic stability.
“With our peers in the KRI, we continue to work with our host Government and Federal Iraqi authorities to negotiate an arrangement that allows the resumption of international oil sales at international oil prices and that provides appropriate returns for those producing the oil,” Genel Energy stated in its report.
The company also highlighted a notable 58% increase in oil production from its fields in 2024 compared to the previous year, reflecting the sector's resilience and potential for further growth.
Resuming Kurdistan’s Oil Exports: A Top Priority
Genel’s Chief Executive Officer, Paul Weir, emphasized that the company, alongside its partners and industry peers, continues to engage with the Kurdistan Regional Government (KRG) and the Federal Government of Iraq (FGI) to facilitate the restart of oil exports.
The prolonged suspension of exports, a consequence of disputes following an international arbitration ruling, has forced oil producers in the region to rely on heavily discounted domestic sales. However, recent indicators suggest that a resolution could soon be reached, potentially doubling Genel’s revenue upon implementation.
“The return to international sales at global benchmark prices is essential for sustaining operations and ensuring appropriate returns for the companies producing the oil,” Weir said. “We remain steadfast in our commitment to securing a fair arrangement that honors our contracts and guarantees timely payments.”
The Iraq-Türkiye Pipeline (ITP) remains a key infrastructure component in this equation. Although domestic sales have provided a stopgap measure, enabling Genel to maintain stable cash flows, the company recognizes that full economic potential can only be realized once the pipeline is reopened.
The prospect of renewed oil exports has already triggered a positive market response, with the share values of major companies operating in Kurdistan’s oil sector witnessing a sharp increase.
The surge comes in the wake of the Iraqi Parliament’s approval of key amendments to the federal budget law earlier this month, a move that effectively paves the way for the official resumption of Kurdistan Region’s oil exports.
Following the budget amendment on March 2, Norwegian energy firm DNO saw its share price climb from $11.89 to $13.87. The company operates in both the Tawke and Bashiqa oil fields. Similarly, Genel Energy’s share value surged from $57 to $70, reflecting renewed investor confidence in the Kurdistan Region’s oil industry. Genel Energy remains a key player in the region, operating across multiple fields, including Taq Taq, Tawke, Fishkhabur, and Sarta.
Industry analysts predict that the full-scale resumption of Kurdistan Region’s oil exports will continue to bolster the financial performance of foreign companies engaged in the sector. The increase in share values is expected to further stimulate investment, fostering a more stable and lucrative energy market in the region.
As the Iraqi government moves toward regulatory approvals, companies like Genel Energy and DNO are positioning themselves for expanded operations. The coming months will be critical in determining the pace at which the Kurdistan Region can restore its oil exports to pre-suspension levels, securing both economic stability and investor confidence.
Kurdistan24's Correspondent at the Economy Desk Balen Ezzat Mika contributed to this report.