Oil Export Resumption Talks in Iraq
Overview of the Meeting
A key meeting is scheduled to occur today, March 6, 2025, in Baghdad, involving representatives from the Federal Ministry of Oil, the Ministry of Natural Resources in the Kurdistan Region, and regional oil production companies. The primary objective of this gathering is to facilitate the resumption of oil exports from Kurdistan.
Objectives and Key Discussions
The discussions aim to identify and eliminate the barriers preventing the export of oil from the Kurdistan Region. Stakeholders from all three parties are keen to finalize agreements today to expedite the return of oil export activities, which are crucial for both regional and national economic stability.
The negotiating team from the Kurdistan government expressed its commitment to the recent adjustments made in the Federal Public Budget Law, which govern the re-exportation of oil through the Iraq State Oil Marketing Organization (SOMO) to the Turkish port of Ceyhan.
Previous Engagements and Challenges
A prior meeting held in Erbil on February 18, 2025, addressed several critical points, including the allocation of oil quantities necessary for local consumption in the Kurdistan Region. This allocation is intended to align with actual demand, similar to regulations for the rest of Iraq.
Additionally, the negotiating team highlighted the importance of establishing a transparent mechanism for compensating production and transportation companies, in accordance with legal stipulations requiring dialogue with the Federal Ministry of Finance.
Federal Government’s Position
The federal government reiterated the necessity to expedite these discussions and secure the required approvals to ensure prompt resumption of oil exports via SOMO. By depositing the resulting revenues into the federal treasury, the goal is to enhance financial resources for the public good.
This call for action comes amid ongoing challenges regarding oil exports from the Kurdistan Region, particularly following the Federal Supreme Court’s ruling in 2022. This ruling deemed the Kurdistan Regional Government’s oil and gas law unconstitutional and mandated that oil exports be coordinated with the federal government.
Moving Forward
Negotiations between Baghdad and Erbil continue as both sides strive to reach an agreement that accommodates the new legal framework governing oil exports. The successful outcome of today’s meeting could pave the way for a resolution to this complex issue, emphasizing the importance of collaboration in Iraq’s oil sector, significantly impacting the national economy.