Challenges in Re-exporting Kurdistan Oil through Turkey
Date: February 25, 2025
Location: Baghdad
Economist Nabil Al-Marsoumi has highlighted significant challenges facing the re-export of Kurdistan oil via the Turkish port of Jihan. In his recent commentary, Al-Marsoumi emphasized the necessity for a formalized agreement with the foreign companies engaged in oil operations within the Kurdistan region.
Al-Marsoumi stated, "It is very difficult to re-export Kurdistan oil through the Turkish port of Jihan without reaching a written agreement with foreign companies operating in the region." He elaborated that these agreements must establish a clear framework for addressing the costs associated with production, transportation, marketing, and the outstanding oil expenses incurred by these companies, which have yet to be recouped.
Moreover, he pointed out that it is crucial to address the concerns regarding profit-sharing for foreign companies under participation contracts.
On February 23, 2025, the Kurdistan Regional Government announced that an agreement had been reached with the Federal Ministry of Oil to resume oil exports from the region according to available quantities. This agreement follows extensive coordination efforts between the two parties. A statement from the negotiating delegation of the Kurdistan government confirmed the formation of a joint technical team tasked with inspecting the export pipeline to ensure its operational readiness for restarting oil pumping.
The statement also reaffirmed the Kurdistan Regional Government’s commitment to adhere to the provisions set forth in the Federal Public Budget Law. This step is aimed at fostering collaboration and ensuring a stable flow of oil revenues.
It is important to note that oil exports from the region had previously been halted due to technical and administrative challenges. The recent agreement signifies ongoing efforts to resolve the outstanding issues that have historically strained relations between Baghdad and Erbil within the oil and energy sector.
