Resumption of Iraqi Oil Exports: Political Developments and Economic Implications
Matthew Zais, HKN’s Vice President for Government Affairs and former Assistant Secretary of Energy in the U.S., announced that a political and legal framework exists to restart operations on the Iraqi-Turkish oil pipeline. Nonetheless, implementation requires robust trade agreements. He emphasized that the halt on oil exports has adversely impacted Iraq as a whole.
On February 28, 2025, Zais participated in a panel discussion addressing the “Regulation of Oil and Gas Demands and Energy Future in Iraq.” He shared insights on the ongoing political negotiations surrounding the reopening of the Iraqi-Turkish oil pipeline.
“Political pressure has mounted concerning an agreement to reactivate the Iraqi-Turkish oil pipeline,” stated Zais. “The suspension of oil exports from Kurdistan has resulted in significant revenue losses for Iraq, negatively affecting local businesses and the overall investment landscape.”
Iraqi Oil Minister Hayyan Abdul Ghani reported that the Kurdistan Regional Government (KRG) plans to resume oil exports imminently. Meanwhile, oil companies in the region are advocating for a new agreement to address existing uncertainties.
“There remains confusion regarding political negotiations and the disparities between legal frameworks and political agreements, which alone are insufficient to restart exports without established trade agreements,” Zais clarified. “This highlights the ongoing political divisions in Baghdad that hinder progress on the Iraqi-Turkish oil pipeline and associated trade agreements.”
Zais noted the importance of political consensus for enabling international investment in Iraq, particularly in the Kurdistan Region. “It is vital for us to embark on a new chapter to attract global investors across Iraq,” he remarked.
Before the closure of the Kirkuk-Turkish oil pipeline, companies were producing approximately 470,000 barrels of oil per day; this figure has since dropped to around 300,000 barrels. Zais expressed optimism that reopening the pipeline would bolster the Kurdistan Regional Government’s gas sector, enhancing both oil exports and leading to increased investment in natural gas.
“Reopening the pipeline serves as a significant signal to the international community that Iraq is a conducive environment for investment,” Zais concluded.
The annual Erbil conference commenced on November 26 and will run through November 28, featuring discussions led by the Rudaw Research Center along with various prominent research institutions from the Middle East and beyond. This year’s theme, “The Uncertainty Accumulated in the Future of the Middle East,” aims to foster dialogue on the geopolitical landscape in Syria, Turkey, Iraq, and related regions, offering a platform for addressing the Kurdish issue across the four nations.
Over the course of the three-day conference, 13 panels and 18 specialized interviews will engage leaders from Iraq, Kurdistan, Turkey, Syria, and surrounding countries.
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