Iraqi Oil Minister Confirms Oil Export Agreement with Kurdistan Region
Iraqi Oil Minister Hayan Abdul Ghani has announced that the State Oil Marketing Organization (SOMO) has entered into a contract for oil sales from the Kurdistan Region, initiating daily exports of 185,000 barrels of oil.
Minister Abdul Ghani affirmed that an agreement has been established for the transfer and export of oil from the Kurdistan Region, aligning with the recent amendments to the budget law, which simplify this process.
On February 2, 2025, the Iraqi parliament ratified amendments to the general budget law that pertain to the production, transportation, and delivery of oil in the Kurdistan Region. Notably, the amendments established a production and transportation cost of $16 per barrel.
Recently, a delegation from the Ministry of Oil visited the Kurdistan Region to engage in negotiations with the Ministry of Natural Resources, aiming to expedite the production and export of oil.
Abdul Ghani confirmed a commitment between the Iraqi government and Turkey to reactivate the oil export pipeline that connects to the port of Ceyhan.
In a statement made on February 26, Abdul Ghani noted, “A special committee has been established to monitor oil exports through the pipeline from Peshkhabur to Turkey. The oil will be measured at the port of Ceyhan to ensure that the exported amount matches production levels from the Kurdistan Region.”
According to the budget law amendments, the Kurdistan Region is expected to deliver 400,000 barrels of oil per day.
Since March 23, 2023, oil exports from the Kurdistan Regional Government (KRG) and Kirkuk through Turkey have been on hold following a ruling from an international arbitration court in Paris.
Abdul Ghani stated that SOMO is responsible for oil exports and that contracts had already been signed with companies for oil purchases in collaboration with the Kurdistan Region. He added, “I have been in touch with the Minister of Natural Resources, who indicated that oil exports will recommence within a day or two, pending resolution of several technical issues.”