Oil Export Deal with Kurdistan Region ‘A Major Achievement,’ Says Iraqi Oil Minister
Baghdad says restarting oil exports through the Kurdistan Region is a strategic step to secure Iraq’s revenues and diversify export routes amid regional instability
ERBIL (Kurdistan24) - As regional tensions continue to cast uncertainty over energy markets and shipping routes, the Iraqi government is moving swiftly to reactivate oil exports through the Kurdistan Region, describing the latest agreement between Erbil and Baghdad as a “major achievement” for Iraq’s national wealth and economic stability.
During a meeting with senior officials from the Iraqi Ministry of Oil, Iraqi Prime Minister Ali Falih al-Zaidi stressed the need to accelerate the resumption of oil exports via the Kurdistan Region and alternative pipelines.
Iraqi Oil Minister Basim Mohammed Khudair described the recent agreement between Baghdad and the Kurdistan Region regarding the oil file as “a major achievement” that would contribute to preserving and developing Iraq’s national resources.
According to the Iraqi government, the move to reactivate exports through the Kurdistan Region and alternative pipelines comes as part of an urgent strategy to address potential risks linked to the possible closure of the Strait of Hormuz and disruptions to southern export operations.
Baghdad aims to prevent any financial crisis by diversifying export gateways and relying on overland export routes through neighboring countries, officials said.
During the meeting, the Iraqi oil minister also announced that Iraq plans to completely end associated gas flaring by the end of 2029.
He said the government is working to ensure the continuity of strategic energy projects and expand the country’s energy sector, including the Basra Sun project in partnership with TotalEnergies.
To support those plans, the oil minister requested that the Council of Ministers approve a stable five-year budget for the ministry.
The meeting also highlighted ongoing coordination between Iraq’s Foreign Ministry and neighboring countries regarding agreements related to overland oil exports, with the aim of ensuring Iraq has alternative export options available amid regional instability.
On March 18, the Kurdistan Region’s Ministry of Natural Resources announced that, under the direction of Masrour Barzani and due to the exceptional circumstances facing the country, full coordination had been established with Iraq’s federal Oil Ministry to resume oil exports.
As part of those efforts, the “Saralu” oil station was reactivated to transport 250,000 barrels of oil per day to the Fishkhabour station, from where the oil would be exported through the Kurdistan Region’s pipeline network to the Turkish port of Ceyhan.
The renewed coordination between Erbil and Baghdad marks one of the most significant recent developments in Iraq’s energy sector, as both sides seek to secure export stability and shield the country’s economy from growing regional risks.