KRG, Iraqi Government and IOCs Reach Interim Deal on Oil Export Resumption
Eight international oil companies (IOCs), together with the Kurdistan Regional Government’s (KRG) share, account for more than 90 percent of the Region’s oil production.
ERBIL (Kurdistan24) – A milestone agreement in principle has been reached to resume crude oil exports from the Kurdistan Region of Iraq through the Iraq–Turkey Pipeline, following months of suspension.
Eight international oil companies (IOCs), together with the Kurdistan Regional Government’s (KRG) share, account for more than 90 percent of the Region’s oil production. On Wednesday, they announced that interim agreements had been achieved with the Government of Iraq (GOI) and the KRG to pave the way for restarting exports.
The exporting companies commended Kurdistan Region Prime Minister Masrour Barzani for his consistent support in securing a resolution that benefits Iraq, the Kurdistan Region, and global energy markets. They also praised Iraqi Prime Minister Mohammed Shia al-Sudani for his leadership and role in facilitating the talks.
According to the statement, the interim framework is aligned with Iraq’s 2023–2025 federal budget law and is expected to be formally signed and ratified in the coming days. Once implemented, exports could resume shortly, providing a path toward more durable arrangements.
The agreement ensures the sanctity of existing contracts and guarantees payment security for IOCs. Additionally, the KRG and oil companies agreed to convene within 30 days of exports resuming to negotiate a mechanism for settling outstanding debts owed to the firms.
"We are confident and optimistic that a win-win solution has been found and once fully signed by all relevant stakeholders, crude oil exports from the Kurdistan Region of Iraq will soon resume through the Iraq–Türkiye Pipeline,” said HKN Energy CEO Russell Freeman.
Meanwhile, Prime Minister Barzani chaired a meeting of the KRG Council of Ministers, with discussions focused on the resumption of oil exports and financial arrangements with the federal government.
Read More: KRG Council of Ministers Discusses Tripartite Oil Agreement and Salary Payments
The deal marks a significant breakthrough in Iraq’s oil sector, with expectations that the resumption of Kurdish exports will not only stabilize the domestic energy market but also strengthen Iraq’s role as a reliable supplier to international markets.
Oil exports from the Kurdistan Region were halted in March 2023 following a ruling by the International Chamber of Commerce in Paris, which required that Kurdish crude exports through Turkey’s Ceyhan pipeline be conducted with Baghdad’s approval. Since then, lengthy negotiations between Erbil, Baghdad, and oil companies have sought to find a formula for their resumption.
The negotiations were fraught with challenges, including political tensions between Erbil and Baghdad and differing priorities regarding resource management and revenue sharing. Disagreements emerged over the legal framework governing oil exports and the distribution of income derived from these exports. Additionally, aligning the interests of multiple stakeholders, including international oil companies, required careful diplomacy to ensure a mutually beneficial outcome.
