Kurdistan's Oil Exports Surpass 200,000 Barrels Per Day

ERBIL (Kurdistan24) – In a development of immense economic and political significance for all of Iraq, the Kurdistan Region's crude oil exports have successfully ramped up to over 200,000 barrels per day, marking a critical step in the normalization of energy relations between Erbil and Baghdad after a crippling two-and-a-half-year shutdown.

According to detailed information obtained by the Kurdistan24 website, a steady flow of approximately 205,000 barrels of oil is now being transported daily from the Kurdistan Region's fields through the strategic Kirkuk-Ceyhan pipeline to the Turkish port of Ceyhan.

However, this moment of cautious optimism is already being overshadowed by a profound and familiar challenge, as the federal government in Baghdad has reportedly failed to adhere to the landmark tripartite agreement that made the resumption possible, specifically by withholding crucial financial dues owed to the international oil companies operating in the region.

This emerging dispute threatens to undermine the fragile trust painstakingly built between the stakeholders and places the future of the entire arrangement in jeopardy, with a new round of high-stakes negotiations now slated to begin only after the upcoming Iraqi parliamentary elections.

The End of a Costly Stalemate

The successful resumption of oil exports on the morning of Saturday, Sept. 27, 2025, brought an end to a costly and damaging paralysis that had choked the Kurdistan Region's economy and created significant friction with Baghdad for thirty long months.

The initial flow began at seven o'clock in the morning, with a volume of 190,000 barrels per day, a figure that has since steadily increased, demonstrating the operational readiness of the fields and the pipeline infrastructure.

The breakthrough was the result of a complex and hard-won tripartite agreement forged between the Kurdistan Regional Government's (KRG) Ministry of Natural Resources, the Iraqi federal Ministry of Oil, and representatives of the international oil companies (IOCs) whose investment and expertise are the lifeblood of the region's energy sector.

This agreement represented a new and pragmatic framework designed to overcome the long-standing constitutional and political disputes that led to the export halt in the first place.

The shutdown, which began in March 2023, was triggered by a ruling from the International Chamber of Commerce (ICC) in Paris, which sided with Baghdad in a dispute with Turkey over the KRG's independent oil sales.

The subsequent closure of the pipeline by Ankara effectively took nearly half a million barrels per day of Kurdish crude off the global market, depriving both the Kurdistan Region and Iraq of billions of dollars in potential revenue.

A New Model of Cooperation in Action

Under the terms of the new agreement, a new operational model has been put into practice. The crude oil produced from the fields within the Kurdistan Region is now officially marketed and sold by Iraq's federal State Organization for Marketing of Oil (SOMO), the entity responsible for all of the country's official oil sales.

This arrangement addresses Baghdad's long-held assertion of federal sovereignty over the nation's energy resources.

Crucially, to ensure transparency and protect the interests of the Kurdistan Region, a representative from the KRG's Ministry of Natural Resources is physically present during the marketing and loading processes at the Ceyhan port.

This joint oversight mechanism is a cornerstone of the new deal, designed to build confidence and ensure that all parties have visibility into the transactions.

The initial results of this new cooperation have been tangible. Since the resumption of exports, a total of four million barrels of oil from the Kurdistan Region have been successfully marketed and sold from the Ceyhan port.

In a clear demonstration of the KRG's commitment to the agreement and to the national revenue system, the financial proceeds from these sales have been directly returned to the federal government's treasury in Baghdad.

This marks a significant departure from the previous era of independent sales and is a foundational element of the new, integrated approach to managing the nation's oil wealth.

Emerging Cracks in the Foundation

Despite the operational success and the KRG's adherence to its financial commitments, the information obtained by Kurdistan24 reveals a critical and deeply concerning breach of the agreement from the federal government's side.

The tripartite deal was predicated on a clear understanding that the IOCs, which had been forced to halt or drastically reduce production for over two years, would receive their contractually obligated financial dues to cover their operational costs and investment returns.

Without these payments, the companies cannot sustain production, let alone invest in maintaining or expanding the capacity of the fields.

According to the information, Baghdad has, to date, not given the financial dues owed to these oil-producing companies.

This non-compliance strikes at the very heart of the agreement and resurrects the deep-seated mistrust that has historically plagued the Erbil-Baghdad energy file. For the IOCs, the lack of payment creates an unsustainable business environment, jeopardizing their long-term presence in the region. 

For the KRG, Baghdad's failure to meet its obligations is seen as a breach of faith that undermines the entire spirit of the hard-won compromise. It signals a potential return to the politically motivated financial pressure tactics that have been used against the Kurdistan Region in the past, a development that could quickly unravel the recent progress.

A Post-Election Reckoning

Recognizing the gravity of the situation, a decision has been made to address the problem through a new round of direct negotiations.

It has been decided that another series of talks between the KRG's Ministry of Natural Resources and the Iraqi Ministry of Oil will commence following the election for the sixth term of the Iraqi Parliament. 

This timeline effectively places the future of the Kurdistan Region's oil exports, and by extension a significant portion of Iraq's potential revenue, in the hands of the next federal government.

The outcome of the upcoming elections will therefore be critical in determining the political will in Baghdad to either honor the tripartite agreement in its entirety or to revert to the contentious policies of the past.

A new government that embraces the spirit of federalism and partnership enshrined in the constitution may seek to resolve the payment issue swiftly, thereby solidifying the new energy framework and unlocking a stable and significant revenue stream for the country.

Conversely, a government dominated by factions hostile to the Kurdistan Region's constitutional rights could use the payment issue as leverage, potentially leading to another cycle of disputes, production disruptions, and another damaging shutdown of the northern export route.

The stakes could not be higher, as the fate of this fragile but vital economic partnership hangs in the balance, awaiting the political verdict of the Iraqi people.