Iraqi Foreign Minister Optimistic on Oil Export Resumption from Kurdistan Region
The Iraqi Foreign Minister has announced ongoing efforts in collaboration with the Kurdistan Region to address the technical challenges hindering oil exports. The suspension of these exports has resulted in a staggering $19 billion reduction in national revenue for Iraq.
During an interview on February 15, 2025, at the Munich Security Conference, Foreign Minister Fuad Hussein stated that a legal framework has been established to support these efforts. He emphasized the importance of addressing technical issues between oil companies, the Kurdistan Regional Government (KRG), and the Iraqi government to facilitate the resumption of oil exports.
Hussein expressed optimism regarding the initiation of discussions on technical matters in the coming week, anticipating an agreement within a few days.
One of the primary obstacles in the oil export negotiations between the KRG and the Iraqi government has been the fees associated with extraction and transportation. On November 2, the Iraqi parliament approved a budget law that increased the fee for extracting and transporting oil from the Kurdistan Region from $6 to $16 per barrel. This fee adjustment is set to be monitored by a committee over a 60-day period, after which a final decision will be rendered.
“This adjustment is expected to enhance the prospects of expediting oil exports, and companies involved have agreed to the revised amounts,” Hussein noted.
In direct correlation to this budget amendment, Iraqi Oil Minister Hayan Abdul Ghani reported that Baghdad plans to initiate the export of 300,000 barrels of oil from the Kurdistan Region through the State Organization for Marketing of Oil (SOMO).
The 22-month suspension of oil exports has halted the flow of 400,000 barrels per day from the Kurdistan Region and an additional 75,000 barrels from Kirkuk through existing pipeline infrastructure.
In late December, a spokesperson for the Kurdistan Oil Industry Association (APCO) stated that the financial losses resulting from the disruption of oil exports via the Iraqi-Turkish pipeline are estimated to range between $23 billion and $24 billion.