Iraq’s Oil Minister Announces Agreement to Resume Oil Exports
The Iraqi Oil Minister, Hayan Abdul Ghani, has reported significant progress in negotiations with the Ministry of Natural Resources of the Kurdistan Region. In a recent statement, he indicated that discussions with Turkey are underway to facilitate the resumption of oil exports within the next two days.
Abdul Ghani confirmed that a joint agreement has been reached to reactivate the pipelines connecting to the Turkish port. This development follows a period of halted exports, dating back to March 2023, during which approximately 400,000 barrels of oil per day from the Kurdistan Region and an additional 75,000 barrels from Kirkuk were suspended due to an arbitration process favoring the Iraqi federal government.
Additionally, a recent amendment to the Iraqi budget law, which was published on February 18, 2025, has come into effect. This amendment pertains specifically to the Kurdistan Region and establishes a production and transportation cost of $16 per barrel of oil. A stipulation within the amendment allows for an international consulting organization to determine a more accurate pricing model within a 60-day timeframe.
Summary of Key Developments
| Aspect | Details |
|---|---|
| Recent Date | February 26, 2025 |
| Oil Minister | Hayan Abdul Ghani |
| Exports Resume Timeline | Within the next two days |
| Oil Production Halt Duration | Since March 2023 |
| Production Cost per Barrel | $16 |
| Adjustment Period for Pricing | International assessment within 60 days |
This agreement marks a crucial step in revitalizing oil exports from the Kurdistan Region, which are vital to both regional and national economies. The commitment to resume exports could signal a stabilizing moment in Iraq’s oil sector amid ongoing complexities in governance and resource management.
